Oil and gas firm Canadian Natural Resources (CNR) said today it saw record global activity in 2011 but its UK business suffered after last year’s Budget.
Canada-based CNR added its North Sea after-tax profits fell 24% as a result of the surprise rise in the supplementary charge on oil and gas producers.
Managing director James Edens said the firm’s proved reserves in the North Sea dropped 8% to 244million barrels of oil equivalent (boe) due to smaller fields now being no longer economic,
The figure could have been boosted by 28million boe had it not been for the tax change, he added.
Mr Edens said he hoped decommissioning relief certainty and tax relief for marginal fields would be included in this month’s Budget, adding he had never known the industry to have been so united on an issue.
CNR is increasing investment off west Africa, run from Aberdeen, partially as a result of diverting spending from the UK. It is also looking to explore off South Africa.
It is still investing in the North Sea, however, and said it could double its activity given the right fiscal environment.
Fourth quarter North Sea production fell 16% to 26,600 boe per day after the Banff floating production vessel and subsea infrastructure was damaged in a storm in December.
Full-year daily production in the North Sea was 29,900 boe, down from 33,200 in 2010.
Group revenue for 2011 was £8.7billion, compared with £8.1billion in 2010. Pre-tax profits in the latest period were £1.9billion, up from £1.7billion previously.
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