The breakfast briefing was organized to discuss the benefits of the latest changes made to the UK oil and gas tax regime.
Oil & Gas UK economics director Mike Tholen said the UK Continental Shelf (UKCS) has about 24 billion barrels of oil and gas, hydrocarbons that are majorly contributing towards the tax revenues of Britain, creating jobs in the high technology supply chain, and the balance of trade and energy security.
"Constructive engagement with HM Treasury over the last 18 months since the 2011 Budget has resulted in the introduction of a range of tax measures which have allowed global investors to consider projects on the UK continental shelf (UKCS) in a new light," Tholen added.
"Securing certainty on the amount of tax relief available on decommissioning costs, the subject of a Treasury consultation that closed on 1 October, will reduce one of the risk factors for companies, leaving the industry to focus on managing other operational risks such as those geological or technical.
"This will allow the UKCS to be managed as a long-term asset, not simply a source of short-term cash flow."
UK exploration and production company EnQuest chief operating officer Nigel Hares said, "The new brown-field allowance is expected to lead to the approval of projects which will extend the lives of fields and increase reserves, employment and tax receipts."
Tholen presented a paper titled ‘Eighteen months of fiscal progress: reflections on recent changes in the UK’s North Sea oil and gas tax regime’ to voice the impact of the new tax regime on the exploration and production cycle business.
