Chancellor announces further action to stimulate investment in North Sea
- Published on Friday, 07 September 2012 10:55
- Posted by Vicki Mitchem
The Chancellor of the Exchequer has today announced a new tax measure aimed at supporting billions of pounds of new investment in older oil and gas fields in the North Sea, increasing tax revenues from the industry.
A tax allowance for certain mature fields, known as brown fields, will shield a portion of income from the Supplementary Charge, encouraging companies to invest in getting the very most out of existing fields and infrastructure in the UK Continental Shelf.
The news comes on top of other ambitious announcements this year aimed at stimulating billions of pounds worth of investment and job creation in the North Sea, and throughout the supply chain.
As well as committing to sign contracts with industry to guarantee their long-term level of tax relief on decommissioning used assets, the Government has this year announced the introduction or extension of allowances for small fields, large shallow-water gas fields and fields in the West of Shetland.
Announcing the news, the Chancellor said:
"Today's tax allowance is more good news for the North Sea, good news for jobs and good news for the broader economy. It will give companies the incentive to get the most out of older fields, creating jobs and delivering more revenue for taxpayers.
"This Government has signalled its absolute determination to get more investment in the North Sea, a huge national asset. Just last week, I saw the benefits at a supply chain factory creating many hundreds of jobs in the North East thanks to Government support for North Sea gas which made a major project possible."
Source: ©HM Treasury