Oil giant BP has welcomed measures announced by Chancellor George Osborne today aimed at boosting North Sea investment.
The operator, which has already committed billions in investment re-developing a number of fields west of Shetland, particularly welcomed moves to boost spending on existing producing fields – so-called brownfield investment.
Matt Taylor, a spokesman from the firm, said: “BP believes it is important that, as well as encouraging new green field developments through mechanisms such as the field allowance, the Treasury also recognises the critical nature of ongoing investment in existing producing fields.
“The opportunities for these producing fields must be maximised if we are to ensure the longevity of critical infrastructure that many of them support.
“Without access to infrastructure many new discoveries may not be developed, potentially leading to increased imports of oil and gas into the UK.”
However, Mr Taylor added: “Overall the tax regime needs to be simple, predictable, and competitive globally, recognising the maturity of the basin and the multiple options investors now have.”
The operator also welcomed moves to remove uncertainty over decommissioning tax relief.
However, it cautioned there would still be much work to do to iron out the detail of any contractual agreement between government and industry.
Mr Taylor said: “BP welcomes the constructive dialogue between the Treasury and industry on this complex area of tax policy.
“BP is supportive of the proposed ‘contract with industry’, which will help remove the uncertainty that has developed on this important issue.
“There remains much detail to be worked through in terms of the Deed and we will continue to work with industry and with the Treasury to further progress development and refinement of the proposal.”
BP and its partners recently announced more than £7 billion of spending to further develop a number of fields west of Shetland – Clair and Schiehallion/Loyal.
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