Revenue Note for Guidance
(1) Some of the more important definitions include —
“exploring for scientific minerals” is searching areas in the State, including searching by drilling, for deposits of specified minerals and includes testing such deposits and winning access to such deposits, but excludes mine development and mine working operations.
“licence” covers an exploration licence, a petroleum prospecting licence, a petroleum lease and certain other licences referred to as reserved area licences.
“petroleum” includes any mineral oil and natural gas and any other mineral substance contained in oil or natural gas obtained in the extraction process, but excludes coal and bituminous shales from which oil can be extracted by distillation. It is necessary for such substances to be extracted or to be capable of being extracted under the authority of a licence.
“petroleum exploration activities” consists of searching for deposits in a licenced area and testing and assessing such deposits or in winning access to such deposits for the purpose of searching for, testing or assessing such deposits.
“petroleum extraction activities” consists of searching for, winning access to and extracting petroleum from a relevant field under a petroleum lease authorising such activities and transporting the petroleum to an area for storage and initial treatment.
“specified minerals” means certain minerals occurring in non-bedded deposits. The minerals in question are listed.
(2) “expenditure on scientific research” excludes expenditure incurred in the acquisition of rights in connection with scientific research.
(2) to (4) “scientific research” is any activities in the fields of natural or applied science for the extension of knowledge. However, specifically excluded are specified mineral and petroleum exploration activities as well as petroleum extraction activities carried on after 28 January, 1992.
Relevant Date: Finance Act 2020