Tax breaks announced in the UK’s March budget could already be taking effect on the UK offshore oil industry, with the possibility of the creation of 700 jobs, from the development of two North Sea oil fields the Culzean and Jackdaw. The tax incentives are aimed at the highly expensive extraction of reserves where high pressures and temperatures have previously made them non-cost effective.
The Culzean and Jackdaw fields operated by BG Group and Maersk Oil, would benefit from tax relief equivalent to a fifth of the investment, which is estimated to be in the region of around £6 billion in total.
As part of his budget speech, the UK’s Chancellor George Osborne said “the UK government’s continued support for the oil and gas industry had led to billions of pounds of investment, and tens of thousands of jobs across the country.”
BG Group’s European upstream business managing director Andy Samuel said: “BG Group welcomes the new proposals which improve the prospect of the Jackdaw gas discovery being developed.
Maersk Oil CEO Jakob Thomasen said: “The proposed HPHT [High Pressure High Temperature ] allowance provides a welcome boost to new and challenging projects and can contribute to energy security, jobs and the economy.”
Last updated on 05:11PM - 10/07/14