LONDON – Representatives of the UK offshore oil and gas industry discussed the sector’s future yesterday with Damian Hinds, Britain’s Exchequer Secretary to the Treasury.
New Oil & Gas UK CEO Deirdre Michie said: “We had a positive meeting with the Exchequer Secretary earlier today and are heartened to hear of his government’s commitment to measures which can provide immediate support and form a long-term strategy to reduce the burden of tax on the basin over time.
“In addition to the tax changes announced in the 2015 budget, the Wood Review has laid strong foundations for the regeneration of the UK North Sea and we look forward to working with the OGA and HM Treasury in a tripartite approach to maximizing economic recovery of the UK’s substantial remaining oil and gas reserves.
“In this regard, I’m also pleased to report that the meeting of PILOT, a joint government-industry forum, today was similarly constructive and positive.”
HM Treasury plans to engage in further measures to promote exploration and address North Sea decommissioning issues this summer. Michie said: “It is essential that appropriate action is taken by budget 2016 – if not sooner.
“We further welcome the affirmation that the scope of the investment allowance will be extended to include a broader range of expenditure. This clarity will make a difference to the attractiveness of this basin to domestic and international investors.”