(1) Depreciation of capital expenditure shall be deducted from the first accounting period or the accounting period in which the asset is brought into use whichever is later as follows:-
(a) Exploration capital depreciation immediately,
(b) Depreciation of capital expenditures incurred to drill, test and complete development wells over four (4) years.
(c) Depreciation of all other capital expenditures over six (6) years (2) Depreciation will be calculated on straight line basis.
(3) Depreciation of an asset taken out of use shall be deducted from the remaining capital expenditure in the manner mentioned above. However, in case of unexpected destruction or loss of such property, the remaining value for deducting depreciation can be deducted as current operating expenses in the year of such destruction or loss.