Turkmenistan revises Hydrocarbon Law
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Local media reports suggest that the revised Law on Hydrocarbon Resources, prepared on the instruction of Turkmen President Gurbanguly Berdimuhamedov, has received the approval of the Mejlis. According to the president, the revised law clearly defines the rights and economic status of the State Agency for the Management and Use of Hydrocarbon Resources under the President of Turkmenistan, which is an independent legal and economic entity. While details have yet to emerge, the revised law spells out fiscal and customs policies, defines benefits enjoyed by the national and foreign investors and companies, and reinforces their ecologic accountability for exploration of hydrocarbon resources. In particular, the revised law provides for the extension of licenses for production output where appropriate as well as a fixed tax on profits for the period of the project implementation. It is understood foreign investors can buy property in Turkmenistan directly or through Turkmen legal entities or private individuals. Under the law passed in 1992, foreign investors were only allowed to set up joint ventures with state-owned companies.
This article is extracted from International Oil Letter, Vol 24 issue 35 dated 1st September 2008.
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