Offshore Europe: UK outlines tax relief for decommissioning North Sea platforms

UK Chancellor of the Exchequer George Osborne outlined details of a tax relief program for decommissioning offshore oil and gas platforms and also emphasized the government’s support for shale gas exploration.

Osborne’s comments came Sept. 3 at the Offshore Europe conference in Aberdeen. Regarding shale gas, Osborne acknowledged the UK public’s concerns about the safety of hydraulic fracturing, but he also said the oil and gas industry needs the ability to develop shale resources in order to remain competitive.

The tax relief for decommissioning is expected to attract billions of investment in UK North Sea oil and gas assets, Osborne said.

He believes the tax relief program will provide cost incentives for industry and will result in production that otherwise might have not happened. Under the incentive, UK officials expect small independents will be willing to acquire mature assets from the majors.

Previously, UK government officials worked with industry regarding decommissioning tax relief, and the Oil & Gas UK last year welcomed publication by the UK Treasury of agreements covering tax relief for decommissioning offshore platforms (OGJ Online, Dec. 12, 2012).

Decom North Sea, an organization specializing in UK decommissioning, has said increased certainty on the tax relief will lead to new jobs and investment in new technology.

Related Articles

Baker Hughes: US drilling rig count drops to 1,803

03/21/2014 After consecutive weeks of significant gains, the US drilling rig count lost 6 units to 1,803 rigs working during the week ended Mar. 21, Baker Hug...

Cenovus gets AER approval for Grand Rapids oil sands project

03/21/2014 Cenovus Energy Inc. reported that it has received approval from the Alberta Energy Regulator (AER) for its wholly owned Grand Rapids thermal oil sa...

Shell lets contracts for Majnoon development

03/18/2014 Shell Iraq Petroleum Development BV has let engineering and procurement services contracts to Foster Wheeler Kentz Energy Services DMCC, Dubai, for...

Ivanhoe halts Tamarack oil sands project citing lack of regulatory ‘clarity’

03/18/2014 Ivanhoe Energy Inc. has suspended activity on its Tamarack oil sands project pending approval for its thermal oil sands application from the govern...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected