Partner Article

New Legislation gives boost to North Sea oil and gas

Changes to government tax rules on North Sea oil and gas production are set to have a positive impact on the sector and its supply chain.

The announcement by the Treasury to increase the Ring-Fence Expenditure Supplement from 6 to 10 percent will now support investment in the North Sea, especially in marginal fields.

George Rafferty, chief executive of NOF Energy, a business support organisation representing aorund 400 energy sector supply chain companies said: “I welcome the change to tax rules on North Sea oli and gas production, which demonstrates the importance the government places on our sector.

“They have listened to the concerns of the industry and made the first step to ensuring that the recovery of North Sea oil and gas reserves is maximised.”

The industry already received a boost In March, when Statoil announced that it would restart development at the Mariner field off the coast of the Shetland Isles. The Norwegian oil company had previously frozen work on their 430 million-barrel field, but their decision to resume will not have positive knock-on effects on the supply chain.

Mr Rafferty added: “I’m sure that others will follow Statoil’s lead in progressing projects in the North Sea, which will require the skills, products and expertise of the UK’s excellent supply chain companies.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .