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Industry body welcomes UK government measures to improve North Sea competitiveness
Oil & Gas UK has commended the UK government’s inclusion of transferable tax history (TTH) in its draft Finance Bill published on 6 July 2018. TTH allows additional investment to be unlocked in the North Sea by enabling more assets to change hands and aids new owners when providing fresh investment to many mature oil and gas fields. It is planned for the measures to be put in law and available for use to industry for deals from 1 November 2019.
Mike Tholen, Upstream Policy Director, Oil & Gas UK, says: ‘The publication of draft legislation for transferable tax history is greatly welcomed by the industry as it’s an additional tool in the deal toolkit, with the potential for bringing new investment to the basin.
TTH will help increase recovery from existing fields and encourage fresh investment, which will both help generate activity for our hard-pressed supply chain. It will also help extend the lives of many mature fields and postpone decommissioning. Adopting this measure makes it clear that the Treasury recognises the need for a predictable fiscal regime as the basin matures, which is critical in ensuring it remains competitive.’
For more on North Sea investment and E&P opportunities, see the August issue of Petroleum Review.
News Item details
Journal title: Petroleum Review
Countries: UK -
Subjects: Policy and Governance, Exploration and production, Taxation, Petroleum taxation, Mergers and acquisitions
