SCHEDULES

SCHEDULE 44Supplementary charge: reduction for certain new oil fields

Part 4No change in equity share: activation of allowance

Activation of field allowance

9

1

An amount of the company's field allowance for the new oil field is to be activated in respect of the accounting period.

2

The amount of the field allowance to be activated is the smallest of the following amounts—

a

the relevant activation limit,

b

the company's relevant income from the field in the accounting period, and

c

the unactivated amount of the field allowance which the company holds at the beginning of the accounting period.

3

The relevant activation limit is—

T5×E×N365math

where—

T is the amount of the total field allowance for the field (see paragraph 24),

E is the company's share of the equity in the field during the accounting period, and

N is the number of days in the accounting period.