FACILITIES FOR PETROLEUM AND GAS

1. CONCEPT
Oil and gas industry can be considered in two divisions : Upstream and Downstream

a. Upstream industries (Upstream)
This covers activities of exploration of crude oil, natural gas from the stage of exploration to drilling, production and storage.

b. Downstream Industries (Downstream)
This covers manufacturing of goods/equipment used at Upstream and include the process of refining and production of petroleum based products.

2. EXEMPTION

a. Item 107 of the Customs Duties Order (Exemption) Order 1988 and Item 70 of the Sales Tax (Exemption) 2008 –provides for exemption from import duty and sales tax on materials / components / equipment directly used in the Upstream Petroleum Industry.

b. Item 126 of the Customs Duties Order (Exemption) Order 1988 and Item 78 of the Sales Tax (Exemption) 2008 – provides for exemption from import duty and sales tax exemptions on materials and components used in  the manufacturing processes of (downstream) supporting industries (FABRICATION).