Part 2

Plant and machinery allowances
Chapter 13

Provisions affecting mining and oil industries

Oil production sharing contracts

Oil production sharing contracts
167
1
Sections 168 to 170 apply if—
a
a person (“the contractor”) is entitled to an interest in a contract made with, or with the authorised representative of, the government of a country or territory in which oil is or may be produced, and
b
the contract provides (among other things) for any plant or machinery of a description specified in the contract which—
i
is provided by the contractor, and
ii
has an oil-related use under the contract,
to be transferred (immediately or later) to the government or representative.
2
For the purposes of this section and sections 168 to 170, plant or machinery has an oil-related use if it is used—
a
to explore for, win access to or extract oil,
b
for the initial storage or treatment of oil, or
c
for other purposes ancillary to the extraction of oil.
3
In this section and sections 168 to 170 “oil” has the meaning given by section 556(3).