Oil & Gas UK: Changes Needed to Support UK’s O&G Sector

Rigzone reported that the oil and gas field allowance structure requires to be altered if the U.K.’s offshore oil and gas sector is to attract the investment.

As quoted in the market news:

The government’s March 2011 decision to increase the top rate of tax on profits from offshore production to 81%, while capping access to tax relief on decommissioning costs at old tax rates reduced the value of projects by almost a quarter overnight, Oil & Gas UK said in its 2011 Economic Report.

“A heavy tax rate, especially for projects involving additional investment in mature fields, and greater uncertainty over future tax treatment, has not helped the industry’s case in proving attractive to international investors,” Malcolm Webb, Oil & Gas UK’s chief executive, said in a statement.

Click here to read the full Rigzone report