Petroleum Act Section 84 — Royalty on concession petroleum

Section 84 requires the concessionaire to pay royalty on petroleum produced in each exploration block. Paid in money, it is a percentage of the value of petroleum sold or distributed in the month at the rates in the royalty schedule annexed to the Act; paid in petroleum, it is the quantity worth the same amount. The annexed schedule applies five tiers to the monthly volume of all petroleum sold or distributed: 5 per cent up to 60,000 barrels, 6.25 per cent for the part from 60,000 to 150,000 barrels, 10 per cent from 150,000 to 300,000, 12.5 per cent from 300,000 to 600,000, and 15 per cent above 600,000 barrels (natural gas of 10 million BTU counts as one barrel). For production from blocks the Department of Mineral Fuels designates as sea deeper than 200 metres, royalty is 70 per cent of the amount otherwise payable. Sections 99 to 99 ter allow reductions.