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Wednesday, November 29, 2017

Oil and Gas UK welcomes budget tax move

North Sea firms have welcomed UK government plans to introduce a new tax break for the sector.

Under plans unveiled in the budget, owners of mature producing fields will be able to pass on their tax history to buyers when they sell their assets.

Chancellor Philip Hammond said the move would encourage new entrants to bring fresh investment to the North Sea.

Trade body Oil and Gas UK said it would help extend the lives of mature fields and postpone decommissioning.


The industry had lobbied for the move in the hope of stimulating investment in older assets.

Oil and Gas UK chief executive Deirdre Michie said: "This is a vital step that can bring in new investment to increase recovery from existing fields and fund fresh investment which is key to generating activity for our hard-pressed supply chain."

Ms Michie added: "While there have been a number of deal announcements in the basin over the last year, these have mostly been for less mature assets, have been extremely complicated and taken a very long time to negotiate.

"This tax measure should help complete deals more quickly and in a more efficient way.

"We note the measure is intended to be effective by November 2018 and are committed to work closely with Treasury to ensure the change delivers the intended outcome."

Read the full story at the BBC website