UK details tax relief for decommissioning North Sea platforms
BY SELINA WILLIAMS
ABERDEEN -- UK Chancellor of the Exchequer George Osborne has detailed contracts that give companies iron-clad guarantees on tax relief on the cost of decommissioning old offshore oil and gas platforms, a move designed to encourage more investment in the economically significant sector.
The assurance for tax relief on decommissioning, or dismantling, old offshore oil and gas installations and facilities will help unlock renewed merger and acquisition activity in the North Sea by allowing big companies to transfer more mature assets to smaller companies for further development.
It will also stimulate the production of additional resources that would have otherwise gone untapped.
Speaking in Aberdeen at the Offshore Europe Oil conference Mr. Osborne said the move will spur an additional 17 billion pounds ($26.4 billion) of investment in North Sea oil and gas and allow for another 1.7 billion barrels of oil to be produced.
Dow Jones Newswires