Income Tax Act 2007 section 1003

Meaning of "oil and gas exploration and appraisal"

Section 1003 defines the term "oil and gas exploration and appraisal" as used throughout the Income Tax Acts.

• Oil and gas exploration and appraisal covers activities aimed at searching for petroleum, assessing the extent of petroleum-bearing areas, and estimating reserves.
• The overarching purpose of these activities must be to determine whether the petroleum found is suitable for commercial exploitation.
• The definition of "petroleum" is drawn from section 1 of the Petroleum Act 1998.
• A corresponding definition for corporation tax purposes is maintained separately in the original source legislation (section 837B of ICTA, as amended).