It was only late last month that Oil & Gas UK released its Economic Report 2014, which we hope provides the definitive guide to the current status and future prospects of the offshore oil and gas industry in the UK.
Last month, I discussed the challenge of the severe weather associated with hurricanes. We were reeling after an early storm struck Scotland, with some rigs in the North Sea recording 9m (30ft) seas. Since then we have been enjoying a warm, dry September, though sea-fog impacted offshore flights.
Well, that's that - it's over - and I mean over.
As conventional oil and gas reserves have declined across the world, more and more operators are turning their attentions towards unconventional reserves.
Total trade between the UK and Kenya has risen to £1billion this year, according to UK Trade and Investment figures. The internal Oil and Gas market in Kenya is poised to develop, creating waves of optimism. Steady streams of opportunities have opened up across Africa in the last decade. Oil and Gas exploration is becoming increasingly important to East Africa, which until this decade has been in the shadow of both West Africa and North Africa. The Kenyan government has recently taken steps to safeguard its tax return from hydrocarbon and mining industry activities. The Kenya Finance Bill 2014 has been passed by the Kenyan Parliament and agreed by President Uhuru Kenyatta. It means that capital gains tax (CGT) has been reintroduced for the first time in nearly 30 years. The standard rate of CGT in the country will be 5%, but the Oil and Gas sector will be taxed at 30% or even 37.5% depending on the company’s tax residency status. Introduction of the CGT means that the previous withholding tax regime is now abolished and popular ‘farm-out’ agreements, which are between resource owners and outside companies providing services, can be completed in a more tax effective way. These transactions are currently taxed at 10% or 20% of the gross investment with deductions. From 2015, a company making an acquisition will be taxed at 30% on the net gain once the initial cost of acquisition is deducted from the sales value. An amendment may be made to future finance bills to include the additional costs incurred up until the time of sale.
It took only two days to choose the Pope. Where is the new energy regulator?
The waiting is over. Scotland has voted ‘No’ to independence.
The oil and gas industry is a fundamental part of the Scottish and UK economy, a fact only highlighted through the referendum campaign. It is therefore important that the governments work together to swiftly implement the recommendations of the Wood Review to minimise uncertainty and create an environment for maximising the recovery of oil and gas in the North Sea, for the long term benefit of the UK and communities in which these businesses operate. The industry must also continue to focus on cross-sector efforts to bring escalating costs under control to protect and enhance the long term prospects of the industry and thereby the Scottish and UK economies as a whole.
REVISED 14.00 FURTHER REVISED 17.40 TO TAKE ACCOUNT OF SALMOND RESIGNATION
Growing up in California, politics was something we discussed openly as a family around the dinner table, and I can still clearly recall the overwhelming sense of pride I had when I cast my first ever ballot as a registered voter.
For most, the day came and went; that same Monday morning feeling, discussions about the weekend, goodbyes before going offshore again. But for a few, the day had been at the top of minds for months.
The Supreme Court in Texas may soon decide whether a “missing comma” will give BP access to Transocean’s’ $750m insurance in relation to Macondo. The Macondo blowout and the explosion that followed killed 11 workers and set off the worst offshore oil spill in US history.
There are many reasons why it is a categorical imperative for Scots to vote yes on 18 September.
This article sets out to add further clarity to the subject of the ultimate potential recovery of oil and gas from the UK Continental Shelf.
It’s a story of Machiavellian political intrigue with oil companies, Scottish lochs, nuclear submarines and a government at war with the socialist industrial heartlands of its country. Chic Brodie, an SNP back bencher first broke the seemingly preposterous story that, in the mid 1980’s, the Tory government of Margret Thatcher intervened at the highest levels and stopped BP exploring for oil in the Clyde estuary for “national security” issues.
“We do we have a contract, don’t we?” The industry has been so hectic recently some have been overlooking basic document management. Now there is a little belt-tightening going on and contract termination and liability questions are being raised. When all was full speed ahead some didn’t seem to worry about the contract. Friends don’t need contracts do they?
It has been widely reported that in the near future, and possibly even this winter, the UK faces the possibility of blackouts due to electricity shortages.
The Scottish Sun had a double-page spread entitled “£600bn – that’s a fracking fortune”. This is based on a report by a pressure group called N-56 which claims that 21-42 billion barrels of oil equivalent could be extracted from unconventional hydrocarbon deposits in the North sea using fracking technology. The claimed tax take is £3-600 billion. It is an attractive idea – enough for one Sun journalist to switch his vote from No to Yes. Sadly, it is largely nonsense.
A teacher’s influence over their school pupils within a classroom environment can determine the career path of a young person one way or another. Teachers are ultimately our mentors who can lead us to aspire to be doctors, lawyers, or even astronauts.
Sir Ian Wood did not, I am sure, particularly want to get involved in the independence referendum debate. Eventually, he was driven to do so by the gross misrepresentation of a subject he knows better than almost anyone.
The Scottish Energy sector is undoubtedly an international affair. Multinational companies are the mainstay of the oil and gas industry and skilled workers from all over the world make up the vital personnel needed to keep the revenue flowing.
Professor Ursula Witte discusses the University of Aberdeen's research into oil-eating bacteria that could help clean up oil spills in North Sea waters
While the Russian energy sector has felt the impact of Western sanctions, the risk of major restrictions being placed directly on the sector remains relatively low.
For Bruce Misamore, $2.5billion just isn’t enough. Not after waiting a decade for justice. Not after his former boss was wrongly imprisoned in Siberia and 50,000 of his company’s former shareholders have yet to be made whole.
For 35 of the past 40 years I've been in the energy industry I've lived in Scotland and have watched Aberdeen and the north-east grow and prosper on the back of oil and gas.