LONDON – Operators’ association Oil & Gas UK plans to discuss the long-term future of Britain’s oil and gas sector during a meeting tomorrow of PILOT, the government/industry forum.
Heading the agenda will be the unexpected announcement last week of an increase in top rate tax to 81% on production from mature fields.
Malcolm Webb, Oil & Gas UK CEO, said: “The UK oil and gas industry believes that the tax change…is ill-informed and was constructed hurriedly and without proper thought of the potential impacts on investment, production and hence energy supply and employment.
“As a result of this new and totally unexpected tax rise, and as we forecast, we have already seen some significant developments being halted.
“This further example of extreme fiscal instability for major energy projects in the UK has severely damaged investor confidence. The industry stands ready to discuss with the Government ways to materially reduce the immediate negative impact of this tax change and avoid shocks of this nature to long-term, capital-intensive projects which are vital to the energy security of this country.”
UK operators to raise tax concerns