UK Oil & Gas responds to meeting with Exchequer SecretaryNews // June 12, 2015
Leaders from the offshore oil and gas industry met with Exchequer Secretary to the Treasury, Damian Hinds on 10 June to discuss the sector’s future as part of a Fiscal Forum.
Oil & Gas UK chief executive, Deirdre Michie, commented: “We had a positive meeting with the Exchequer Secretary and are heartened to hear of his government’s commitment to measures which can provide immediate support and form a long term strategy to reduce the burden of tax on the basin over time.
“In addition to the tax changes announced in the 2015 Budget, the Wood Review has laid strong foundations for the regeneration of the UK North Sea and we look forward to working with the OGA and HM Treasury in a tripartite approach to maximising economic recovery of the UK’s substantial remaining oil and gas reserves.
"In this regard, I’m also pleased to report that the meeting of PILOT, a joint government-industry forum, today was similarly constructive and positive.
“The industry is pleased that HM Treasury plans to take the next step to engage on measures to promote exploration and address the decommissioning challenge over the summer. It is essential that appropriate action is taken by Budget 2016 – if not sooner.
“We further welcome the affirmation that the scope of the investment allowance will be extended to include a broader range of expenditure, this clarity will make a difference to the attractiveness of this basin to domestic and international investors.
“I would also like to take this opportunity to reaffirm industry’s commitment to increasing efficiency and addressing its cost base in what continues to be a challenging time for the sector.”