By Tom Baxter, Senior Lecturer, Chemical Engineering, Aberdeen University
Despite Professor Alex Kemp’s justification for decommissioning tax breaks, any break is a very poor deal for the UK taxpayer. Current levels are set at 75% or 50 % for respective petroleum revenue tax (PRT) paying and non-PRT fields. With estimates of the total decommissioning cost at ca £40billion, the taxpayers’ portion is, by any fiscal measure, a huge sum of money. It equates to approximately £1,000 per UK taxpayer. Furthermore, should decommissioning costs increase, as many suspect they will, the risk to the taxpayer is obvious.
As the dust settles on Philip Hammond’s first (and last!) Autumn Statement, it is worth taking stock of the impact of the announcement on the oil and gas sector.
UK taxpayers could be liable for a significant share of the North Sea’s multi-billion pound decommissioning costs over the next 40 years, according to a new study.
Decommissioning faces the challenge of “inertia” within the industry according to a Shell project director leading the way with North Sea decommissioning.
Former Scottish secretary Alistair Carmichael said today that the decommissioning market should become a key driver of employment in Orkney and Shetland.
An Aberdeen offshore engineering services firm believes there is money to be made in the gap between well plugging and abandonment (P&A) and platform removal.
The £415million Aberdeen harbour expansion project took another step towards fruition yesterday after the project received consent for dredging and construction.
Despite having some of the most ambitious plans of any UK port, bosses at Aberdeen harbour are not getting carried away as far as decommissioning is concerned.
The Offshore Coordinating Group (OCG) has hit out at the decommissioning of a giant oil and gas vessel after it was found languishing on a Bangladesh beach.
A fresh push on decommissioning to reinvigorate the North-east economy is needed from the Scottish Government, according to Scottish Green co-convener Maggie Chapman.
With decommissioning edging its way to the forefront of North Sea industry minds, yards are already vying for a slice of a pie thought to be worth £50billion over 30 years.
An Aberdeenshire turbine firm has recorded a near-doubling of its profits two years in a row thanks to strong international sales and the success of new products lines.