So far so good – but tax cuts still needed to safeguard N. Sea jobs and investment, oil and gas chiefs tell UK Treasury

Oil workersLeaders from the offshore N. Sea oil and gas industry have met with Damian Hinds, the Exchequer Secretary to the Treasury,  to discuss the sector’s future as part of a ‘fiscal forum’. on the sector’s future.

Afterwards, Deirdre Michie – the Aberdeen-based Chief Executive of Oil & Gas UK –  said she was ‘heartened’ to hear of his commitment to measures which can provide immediate support and form a long term strategy to reduce N. Sea energy taxes.

Deirdre Michie, UKOG
Deirdre Michie, UKOG

She said: “We’re pleased that the Treasury plans to take the next step on measures to promote exploration and address the decommissioning challenge over the summer.

“It is essential that appropriate action is taken by Budget 2016 – if not sooner.

“We further welcome the affirmation that the scope of the investment allowance will be extended to include a broader range of expenditure, this clarity will make a difference to the attractiveness of this basin to domestic and international investors.”

Michie also reiterated the industry’s commitment to increasing efficiency and reducing its cost base in what continues to be a ‘challenging time’ for the sector.

Meanwhile, the final session of the OGUK conference next week in Aberdeen will be led by Cllr Jenny Laing, Leader of the city council.

The session will include an outline of the Aberdeen City-Shire Deal, leading into a debate on the broad themes highlighted in the City Region document with a panel of industry specialists.

It will also coincide with the ‘prepare for redundancy and job-hunting’ Employment Event being held on the same day in the city’s Beach Ballroom.

The event – organised under the imprimatur of JET – the Scot-Govt Jobs Energy Taskforce – has a focus on the oil and gas industry but is open to people in all energy sectors. Visit for more information.

More than 5,000 redundancies in the North Sea oil and gas exploration and supply chain industry have been officially reported to the Scot-Govt.  jobs energy taskforce since June 2014 – and more job cuts are definitely in the pipeline, a fact which very senior sources at major Scottish contractors have independently confirmed to Scottish Energy News.


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