Turkmen parliament to pass new law on hydrocarbon resources

A revised law "On Hydrocarbon Resources" has been sent to the Mejlis of Turkmenistan for consideration and approval. It was prepared on the instruction of Turkmen President Gurbanguly Berdimuhamedov. The head of state read out amendments to the law at an expanded government meeting on August 15, the Turkmenistan.ru correspondent reports from Ashgabat.

According to Gurbanguly Berdimuhamedov, the revised law clearly defines the rights and economic status of the State Agency for the Management and Use of Hydrocarbon Resources under the President of Turkmenistan, which is an independent legal and economic entity.

The president noted that universal norms of international law were taken into account in the process of preparation of the law. The law spells out fiscal and customs policies, defines benefits enjoyed by the national and foreign investors and companies, and reinforces their ecologic accountability for exploration of hydrocarbon resources.

In particular, the revised law provides for a possibility of extension of licenses for production output in terms of the project's compliance with business expediency as well as a fixed tax on profits for the period of the project implementation.

"I believe the adoption of this law will benefit the Turkmen economy," the head of state said. He instructed vice prime minister Tachberdi Tagiyev, who is in charge of the hydrocarbon sphere, to discharge control over timely implementation of the new law.