In more recent news, the Chancellor of the Exchequer has delivered his 2015 budget to the public and has allocated a generous £1.3 Billion boost to the North Sea. News of this allocation has spread like wildfire and has been welcomed with open arms across the sector.
Upon delivering his budget speech, the chancellor mentioned that “Falling oil prices mean good news for families across the UK but it comes with its challenges for thousands whose jobs depend on the North Sea Thanks to the field allowances already introduced we seen a record of £15 Billion of capital investment last year in the North Sea. Fall in oil prices poses a pressing danger to the future of our North Sea industry unless we take bold and immediate action.”
The 4 key announcements expected to give the North Sea Industry a substantial enhancement were:
1st – A single, simple and generous tax allowance to stimulate investment at all stages of the industry from the 1st of April
2nd – The government will invest in new seismic surveys in under explored areas of the UK continental shelf
3rd – From next year the Petroleum Revenue tax will be cut from 50% to 35% to support continued production in older fields
4th – With immediate effect the Supplementary Charge will be cut from 30% to 20% and back dated to the beginning of January 2015
The Chancellor concluded: “The measures announced amount to £1.3 Billion of support for our vital North Sea industry and gives an expected boost of 15% to North Sea Production by end of the decade.”
What are your thoughts on this recent development? Have your say here….