North Sea oil to bring in £1billion in tax this financial year, says Oil and Gas UK

Fewer wells are being drilled than are being abandoned, according to the new OGA study
An oil and gas platform

North Sea oil will bring in £1billion in tax to the UK government this financial year, according to Oil and Gas UK.

It’s in steep contract to the previous twelve months which brought no revenues to the Treasury.

The industry body says the boost is down to a rise in the price of Brent Crude oil, as well as higher production coupled with lower costs.

Revenues last year were down to minus £316million – the lowest since the 1960s – due to the downturn in oil price.

It was the first time that tax rebates issued to companies as relief outweighed the amount brought in.

Adam Davey, Oil & Gas UK’s market intelligence manager, said: “The UK oil and gas industry is a major contributor to the UK economy and despite the downturn, the sector is still expected to deliver more than £1 billion in production taxes alone this year.”