皇冠体育app

Today (23 July 2014) the government has published a consultation on a new cluster area allowance to encourage investment in ultra high pressure, high temperature oil and gas fields.

皇冠体育appre is still a considerable amount of oil and gas to recover in the North Sea 鈥� up to 21 billion barrels of oil equivalent. However, exploration and production is becoming harder and more expensive.

皇冠体育app new allowance builds on Sir Ian Wood鈥檚 recommendations for maximising economic production of oil and gas. It has been designed not only to support investment in technically challenging development projects, but also to encourage exploration in the surrounding areas.

皇冠体育app allowance will reduce the tax on a portion of a company鈥檚 profits from 62% to 30% at current rates.

皇冠体育app government is committed to maximising the benefits that the UK鈥檚 oil and gas resources can bring to the economy 鈥� not just through tax, but through jobs, skills and exports. 皇冠体育app UK offers the strongest basis to maximise these benefits because of the size and diversity of its economy. It provides the stability and predictability needed for companies to invest and is able to adopt a long-term approach to the sector because of its broad shoulders.

Chancellor of the Exchequer George Osborne said,

This is another example of how we are backing investment that creates jobs across the UK. 皇冠体育app UK鈥檚 oil and gas industry is one of the country鈥檚 greatest industrial success stories, and this allowance will help ensure we continue to maximise the benefits from the sector for decades to come.

皇冠体育app government welcomes responses from industry, and will announce the final policy design in the autumn.

皇冠体育app allowance builds on the success of the government鈥檚 previous allowances, which directly incentivised around 拢7bn of investment in the North Sea last year, according to industry estimates. This investment supported over 100,000 jobs across the UK.