BNE has earned $94 million from Belize crude – GOB earns $5.6 mil
Posted: 20/01/2007 - 10:52 AM
Author: Adele Ramos
The Government of Belize, through the Ministry of Natural Resources and the Environment, has released comprehensive petroleum data for 2006. Via a press release, the Government reports that to date Belize Natural Energy, the only oil producing company in Belize and the first to declare a commercial find—has produced 811,199.40 barrels of oil. A small 5.6% portion has remained for the local market and the rest of it—715,872.29 barrels—have been exported to the world market.
While Government does not place a clear dollar value beside these figures, Amandala has calculated, based on the data provided, that total oil sales have amounted to roughly $94 million, including about two million dollars in local sales.
The press release from GOB goes on to summarize what Government has collected and will collect from the deal.
“As it relates to Government-generated petroleum revenues, these are collected in the form of royalties, production share, income tax and government working interest,” the release said.
To date, Government has collected US$2.1 million in royalties, which is calculated at 7.5% of gross production. It notes that payment for the fourth quarter of 2006 is excluded.
At the end of January, GOB should also expect another 1.5% of net production, called production share, and, following recent amendments in the Income Tax legislation, GOB is also entitled to a 40% tax on chargeable income, retroactive to January 1, 2006. Finally, GOB has a 10% working interest in BNE’s oil field.
GOB said that BNE has prepared BZ$1.4 million in income tax towards the amount that will become due on March 2007 for the 2006 year.
“Payment is to be worked out at the end of the financial year at which time payment is to be made,” said the GOB release.
Total received to date, based on the data the Ministry provided, is $5.6 million.
Prime Minister and Minister of Finance, Hon. Said Musa, had said, when the tax amendment was being introduced to legislators, that the amendment would bring GOB’s returns to roughly 50% of what is earned from Belize crude. Currently, the meter stands at just under 6%.
BNE’s CEO, Dr. Gilbert Canton, reported via letter to the media this week that “BNE is currently finalizing its accounts and production statistics for calendar year 2006 in preparation for external auditing and subsequent submission to the Government of Belize.”
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