Provides that a carbon tax is due for the burning of petroleum and the discharge of natural gas in connection with offshore oil production. (Sec. 1) Therefore, flaring is covered by this tax.
The tax will be assessed on burned petroleum, methane emissions, and CO2 emissions, from production or transportation of petroleum. (Sec. 2)
The law grants authority to the Petroleum Directorate over the calculation and payment of the tax. (Sec. 4) The law authorises the Ministry of Petroleum and Energy to issue regulations for the program, including requirements for metering and reporting, to determine the volume of emissions. (Sec. 5)
Submitting incorrect or incomplete documentation, or other violation, is punishable by imprisonment for up to 3 months. (Sec. 7)