20.6 C
June 26, 2022

ANRM Vice President: Royalties not to grow over the short term

Gheorghe Dutu, Vice President of the National Mineral Resources Agency (ANRM), considers that a spectacular hike in royalties is unlikely over the short term and a decision on their future levels could be taken in a month or two.

In an interview for Agerpres, Dutu pointed out that in 2014 the oil royalties owed to the state stood at approximately RON 1.367 bln, and were collected. In what concerns the mining royalties owed, their value stood at RON 248 M of which RON 190 M has been collected so far.

Concerning the possible hiking of royalties, Dutu emphasized: “Over the short term a spectacular hike in royalties is unlikely. The new royalties will most likely be applied to future oil agreements. The existing agreements have already been signed with terms that include the current royalties on the basis of which the companies have drafted their business plans for a period of 10-15 years. The system of royalties has the advantage that it ensures immediate state budget revenue from the moment the production starts. There are countries where the royalties are zero, but the profit tax is very high.”

A decision concerning the changing of the level of royalties will be taken “in a month or two, before the start of the parliamentary recess,” according to the ANRM Vice President.


Related posts

Romania to start financial information exchange system as of Sept. 2017

Nine O' Clock

ASIROM Vienna Insurance Group won the award for the “e-team” category

Nine O' Clock

Arpechim acquisition and high wages led Oltchim to insolvency

Nine O' Clock