OT12050 | PRT: supplement - eligible expenditure: summary

Four categories of expenditure allowable under OTA75\S3 (see OT09025) and OTA75\S4 (see OT11100) or OTA83\S3 (see OT11050) are listed in OTA75\S3(5) as eligible for supplement. In each case the expenditure must have been incurred for one or more of the following qualifying purpose as follows

• OTA75\S3(5)(a), bringing about the commencement of winning or transporting oil, see OT12100

• OTA75\S3(5)(b), ascertaining the extent or characteristics of any oil-bearing area in a field or the reserves of any such oil-bearing area, see OT12250

• OTA75\S3(5)(c), substantially improving, or substantially reducing a decline in, the rate at which oil can be won or transported from the field, see OT12300

• OTA75\S3(5)(d), providing any installation for initial treatment or storage, see OT12350.

Where the expenditure is incurred partly for a qualifying purpose and partly not, an apportionment needs to be made, see OT12450. Where the purpose of the expenditure relates partly to tariffing, see OT12500. Expenditure on hired assets is covered at OT12550.