Consolidated report on payments to governments

September 01, 2016

Tethys Petroleum Limited (“Tethys” or “the Company”)

Consolidated report on payments to governments

Tethys Petroleum Limited presents below its consolidated report on payments to governments for the year ended 31 December 2015, for activities related to exploration, development and extraction of oil and gas resources.
The Company has prepared the following consolidated report in accordance with DTR 4.3A of the Financial Conduct Authority Disclosure and Transparency Rules and in compliance with the Reports on Payments to Governments Regulations 2014 (SI 2014/3209), as amended by the Reports on Payments to Governments (Amendment) Regulations 2015 (SI 2015/1928).

Basis of preparation
The Company discloses below payments made to governments of the Group’s subsidiaries involved in extractive activities. The term ‘government’ includes a department, agency or entity that is controlled by the government authority.

Reporting currency
Where payments have been made in currencies other than the reporting currency (USD), the exchange rate existing at the time the payment is made has been used.

Payment types disclosed at project level
“Project” is defined as “operational activities governed by a single contract, license, lease, concession or similar legal agreements and form the basis for payment liabilities with a government”. Where multiple such agreements are substantially interconnected, this was considered a project for the purpose of this report.

The payments are presented on a cash basis, net of any interest and penalties on late tax payments.
There were no payments in kind made to a Government during the year.
The following payment types are disclosed for legal entities involved in extractive activities for the year ended 31 December 2015:
Bonuses
Payments to governments based on cubic metres of gas discovered.
Fees
Payments to governments in the form of fees in relation to licence.
Infrastructure
Payments to governments to improved local infrastructure.
Taxes
Payments to governments includes taxes levied on the income, production or profits of companies. Taxes levied on consumption such as value added taxes, personal income taxes or sales taxes are not reportable under the Regulations.
Excluded amounts
Taxes levied on consumption such as value added taxes, personal income taxes, sales taxes, property and environmental taxes have not been included in this report.

Payments summary Payments to governments by country and project made during the year ended 31 December 2015:

Country     Government          Project     Bonus   Fees    Infrastructure  Taxes   Total   
                                            $'000   $'000   $'000           $'000   $'000   
Kazakhstan  Treasury Committee  Akulka Gas  -       104     33              58      195
            of the Ministry of  Akulka Oil  -       -       54              718     772
            Finance of          Kyzloi Gas  306     -       54              25      385
            Kazakhstan          Kul-Bas     -       -       22              -       22
Tajikistan  Tajikistan Tax      Bokhtar PSC -       -       -               130     130
            Authority   ¦  
Grand Total                                 306     104     163             931     1,504

Ends
FOR FURTHER INFORMATION PLEASE CONTACT:

Tethys Petroleum
info@tethyspetroleum.com
Web: http://www.tethyspetroleum.com

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