Westminster’s hopes of spurring North Sea spend in the coming years could be derailed by one fundamental issue: a lack of available projects.
In February, the Norwegian Ministry of Finance announced a consultation on the proposal that Norway extend its taxing rights. This would include non-resident companies undertaking certain offshore activities in renewable energy.
Shell has revealed it received more than £60m back from the UK Government last year in relation to decommissioning its Brent field in the North Sea.
The head of a North Sea industry body has urged the UK Treasury to save itself tens of millions of pounds by letting oilfield owners transfer tax histories.
The UK Government has launched a discussion paper on possible North Sea tax relief for late life assets.
While the North Sea is far from being on its last legs, the collapse in the price of oil and the high cost of running ageing infrastructure does mean that production is becoming uneconomic in an increasing number of fields. This has brought decommissioning activity into sharp focus, for upstream producers as well as the supply chain. Similarly, the subject of decommissioning tax relief has attracted much press coverage in recent months.
With Chancellor Philip Hammond set to deliver his first Spring Budget today, oil and gas will be no different to any other industry in hoping for extra support.
The UK Government is planning to put the 28th set of North Sea exploration licences up for grabs early next year.
An annual review of the oil and gas exploration and production (E&P) sector by market analyst Wood Mackenzie found high oil prices and constructive tax talks between the UK Government and industry had increased investor confidence.
Chancellor George Osborne is poised to deliver a fresh boost to the North Sea oil and gas industry in his Autumn Statement today.
The willingness of wealthy private investors to back fledgling Scottish companies dipped significantly last year, according to a new report by international law firm Pinsent Masons.
A fresh political row has erupted over the role of North Sea oil and gas in an independent Scotland after the revenues forecast for the next 30 years were halved.
BP has reportedly put nearly £2billion of North Sea assets on the market after the chancellor's Budget last week.
Chief Secretary to the Treasury Danny Alexander said yesterday that the UK Government hopes to introduce further tax relief for the oil and gas industry in next year's Budget.
CHANCELLOR Alistair Darling last night faced new demands for tax relief to head off decline in the offshore energy industry, after the government said it has had to put off offering more exploration and development licences.