An oil and gas industry analyst yesterday said the industry could still be a taxation target for the chancellor.
Douglas-Westwood chief executive Andrew Reid said the North Sea industry was still an attractive area to invest in despite last year’s tax £10billion grab by the UK Government.
He added: “Project, activity and spending levels are probably poised to increase quite significantly over the next two to three years.
“If I were the chancellor, with the wider economy in flux, I would be thinking oil and gas are national resources with supernormal returns being made; it is going to be a target.”
His comments came as Talisman Energy said it was in talks with the Treasury about its £1billion North Sea Montrose area development, MonArb, which would unlock 40million barrels of oil equivalent. The project is awaiting an investment decision by Talisman and its partners.
MonArb would see two discoveries – Cayley and Shaw – tied back to the Montrose platform, requiring new process and production facilities.
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