The head of the UK’s oil and gas industry body admits being perplexed by the Government’s decision to go ahead with controversial bareboat tax changes.
Malcolm Webb, chief executive of Oil and Gas UK, said the organisation welcomed a new allowance announced by Chancellor George Osborne in the Budget statement to support HP/HT projects in the North Sea, and support for the Wood Review.
But he said the tax change to bareboat chartering arrangements could prove damaging to exploration and development projects across the UK continental shelf.
“This can only increase costs on the UKCS where operating costs have increased sharply in recent years and last year saw a rise of 15.5% to an all–time record of £8.9 billion, and new developments are facing similar cost pressures,” he said.
Watch our exclusive video interview with Malcolm Webb below.
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