Industry body Oil & Gas UK on Talisman Energy's decision to invest £1.6bn in extending the life of fields in the North Sea.Oil & Gas UK is delighted to hear that the Government has approved Talisman's £1.6bn MonArb Area Redevelopment Project.
Not only will this result in hundreds of millions of pounds being invested in the UK economy but it will also support more than 2,000 jobs in the high technology supply chain, in areas such as fabrication, subsea engineering and construction.
This news follows the introduction last month by Government of a new tax allowance to encourage investment in such older (brown-field) oil and gas fields, the strongest signal yet of the Government’s commitment to make the most of the UK’s oil and gas resources.
Brown-fields typically have high running costs as they rely on mature infrastructure and are subject to up to 81 per cent tax on production.
Despite there being a huge potential still to be recovered from these fields, current costs and tax rate make it hard to attract investment.
The new allowance will help unleash the full potential of the UK continental shelf for the benefit of Britain's economy and energy security.
The new investment in these fields is vital, it will help boost recovery and postpone decommissioning which will in turn allow new fields to be brought on-stream using this existing infrastructure.
The brownfield tax allowance should in the near term lead to investments amounting to £2 billion, providing tax revenues of over £1.5 billion and many thousands of high skilled jobs.
Through such measures, Britain's offshore oil and gas industry can continue to make a valuable contribution to the UK economy, boosting the balance of payments by £40 billion and providing almost half of the UK’s primary energy.
telegraph.co.uk
Not only will this result in hundreds of millions of pounds being invested in the UK economy but it will also support more than 2,000 jobs in the high technology supply chain, in areas such as fabrication, subsea engineering and construction.
This news follows the introduction last month by Government of a new tax allowance to encourage investment in such older (brown-field) oil and gas fields, the strongest signal yet of the Government’s commitment to make the most of the UK’s oil and gas resources.
Brown-fields typically have high running costs as they rely on mature infrastructure and are subject to up to 81 per cent tax on production.
Despite there being a huge potential still to be recovered from these fields, current costs and tax rate make it hard to attract investment.
The new allowance will help unleash the full potential of the UK continental shelf for the benefit of Britain's economy and energy security.
The new investment in these fields is vital, it will help boost recovery and postpone decommissioning which will in turn allow new fields to be brought on-stream using this existing infrastructure.
The brownfield tax allowance should in the near term lead to investments amounting to £2 billion, providing tax revenues of over £1.5 billion and many thousands of high skilled jobs.
Through such measures, Britain's offshore oil and gas industry can continue to make a valuable contribution to the UK economy, boosting the balance of payments by £40 billion and providing almost half of the UK’s primary energy.
telegraph.co.uk
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