Oil major’s BP and Shell have backed the changes implemented by the UK Government to help support the North Sea oil and gas industry amid the global decline in oil price.
Chancellor George Osborne today revealed the Supplementary Tax would be reduced by 20% to 10% while Petroleum Revenue Tax – which stood at 35% – is set to be “abolished”.
Mark Thomas, regional president for BP North Sea, said: “We welcome the two tax rate reductions for the North Sea. It is important that the tax regime reflects the maturity of the basin as well as the challenging commercial environment.
“Today’s Budget, combined with the action the industry is taking to become more efficient, is an important step in building the international competitiveness of the North Sea.”
Meanwhile, Shell’s vice president from Upstream in the UK & Ireland said changes brought in by the government are a “step in the right direction” to help the North Sea oil and gas industry.
Paul Goodfellow said: “Today’s changes to the tax regime are a step in the right direction to improve the North Sea oil and gas industry’s competitiveness in the current challenging environment. As an industry we are taking steps to safely reduce our cost base and increase efficiency, working alongside the government and OGA.”
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