DEO lauds UK field allowance change

Offshore staff

ABERDEEN, UK – DEO has welcomed the new field allowances announced earlier this week for companies operating on the UK continental shelf.

The changes, which are intended to stimulate investment and production in the North Sea, should benefit DEO, in particular the new small field allowance against the current Supplementary Charge rate of 32%.

DEO estimates that as a result, recoverable reserves from its current Perth Field Phase 1 development will be below the new minimum threshold set by HM Treasury of around 45 MMboe.

This means the company will benefit from the full amount of its 52.03% share of the increased field allowance of £150 million ($238 million), which should reduce its tax payable by around £25 million ($39 million) over the life of the field.

3/23/2012

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