Tax Exemption in relation to Late Life Asset Production Sharing Contract (PSC)
Late Life Asset Production Sharing Contract (PSC)
The Late Life Asset (LLA) PSC was adopted by Petronas in 2019 for specific oil and gas fields nearing the end of their productive life with resources of less than 30 MMstb.
These PSCs have better terms for Contractors, intending to extend the value of the fields until abandonment.
The first two LLA fields (the Tembungo and the MASA Cluster) were offered in the 2020 Malaysian Bidding Round.
Proposed Incentives for Late-Life Assets (LLA) Projects
In Budget 2022, some measures have been suggested to persuade oil and gas investors to participate in LLA projects. To read more: