Andy Samuel, OGA Chief Executive, said: “These measures provide timely support to investment in the UK oil and gas industry.
“The permanent reduction in Petroleum Revenue Tax from 35% to 0% will help to create a level playing field between old and new fields, recognising the maturity of the basin. This, in addition to the reduction in the Supplementary Charge from 20% to 10% sends a clear message that the Government is continuing to strongly support the industry by providing a truly competitive fiscal regime.
“We are also very pleased to see plans to extend the Investment Allowance to allow tariff income on third party access to be included, as well as greater certainty on decommissioning tax relief; which overcomes what has been a stumbling block to asset transfers.
Samuel is a member of the new Ministerial group on oil and gas, chaired by Energy and Climate Change Secretary Amber Rudd.
The group has been set up to reiterate the UK Government’s commitment to supporting the oil and gas industry and those who work in it. The group will coordinate the UK’s response to the oil price and focus on vital issues such as exports, skills and investment.
He added: “These measures, in addition to the further £20 million exploration package announced by the Prime Minister in January and the £180 million for the Oil and Gas Technology Centre as part of the City Region Deal are a welcome boost to the sector.”
“We are pleased to have helped progress key pieces of work alongside HMT and industry via the three collaborative workstreams focusing on exploration, infrastructure and late life. OGA will continue to work closely with industry and Government to maximise economic recovery from the basin.”
In January, the UK government announced a package of measures to further support the UK oil and gas industry including £20 million to fund more seismic surveys, £500,000 seed funding for an exploration licence competition, £700,000 to be invested in a world class 3D visualisation facility at the Lyell Centre at Edinburgh’s Heriot Watt University and the £180 million Aberdeen City Region Deal.
MAXIMISING N. SEA ECONOMIC RECOVERY – the Issues: Aberdeen 14 April 2016
You are invited to attend a conference that we are holding in April at the University of Aberdeen at which we will consider the Issues in Delivering MER within the new environment in which the UKCS is now operating.
We are confident that we have created the very first conference of this kind, where a range of speakers from academia and industry will debate the major legal, organisational and technical issues, many of which have not yet been discussed or debated in sufficient detail, and are not yet common knowledge.
The conference will offer you significant opportunity to hear from key experts, network with fellow colleagues and get involved in the key areas of discussion.
Find out full details and register for the event here.
Upon registration we will send you out a full schedule.
The government’s new UK MER Strategy can be viewed here: – https://goo.gl/ebD3S8
It states at Section 28 on Collaboration
When considering how to comply with obligations arising from or under this Strategy relevant persons must:
- where relevant, consider whether collaboration or co-operation with other relevant persons and those providing services relating to relevant functions in the region could reduce costs, increase recovery of economically recoverable petroleum or otherwise affect their compliance with the obligation in question;
- where it is considered possible that such collaboration or co-operation might improve recovery, reduce costs or otherwise affect their compliance with obligations arising from or under this Strategy, relevant persons must give due consideration to such possibilities; and
- co-operate with the OGA.
|Sir Ian Diamond, Principal, University of Aberdeen|
|Paul Goodfellow, Shell UK|
|Gunther Newcombe, OGA|
|Graeme Young, CMS|
|Derek Leith, EY|
|Prof. John Paterson, University of Aberden|
|Prof. Alex Kemp, University of Aberdeen|