On 17 June 2019, the Minister of Mines and Energy signed Regulation No 252, which regulates the process of setting priority projects in the oil, gas and biofuel sectors for issuing incentive debentures. The regulation will help unlock investment in oil, natural gas and biofuels. According to the ordinance, priority shall be given to the following activities:

  • exploration and production of oil and natural gas;
  • transfer and transportation of oil and its derivatives, natural gas and biofuels;
  • flow of oil and natural gas production;
  • natural gas treatment and processing;
  • underground storage of natural gas;
  • liquefaction of natural gas and regasification of Liquefied Natural Gas – LNG;
  • production and storage of fuels and other petroleum derivatives;
  • provision of local piped gas services; and
  • production and storage of biofuels.

The ordinance also clarifies about certain conditions of investments. Foreign investor investing in infrastructure debentures will get exempt from financial and withholding taxes when paid or credited to the foreign beneficiary.

This ordinance shall enter into force on the date of its publication.