The chief executive of the UK’s Oil and Gas Authority (OGA) said the reduction of the Petroleum Revenue Tax (PRT) from 35% to 0% would help create a “level playing field”.
Andy Samuel said the industry regulator welcomed the changes made yesterday by Chancellor George Osborne which also include a reduction to the Supplementary Charge from 20% to 10%.
The former BG boss said the measures sent a “clear message” that the Government is continuing to support the industry.
He said:“The Oil and Gas Authority very much welcomes the measures announced as part of the Chancellor’s Budget announcements which provide timely support to investment in the UK oil and gas industry.
“The permanent reduction in Petroleum Revenue Tax from 35% to 0% will help to create a level playing field between old and new fields, recognising the maturity of the basin. This, in addition to the reduction in the Supplementary Charge from 20% to 10% sends a clear message that the Government is continuing to strongly support the industry by providing a truly competitive fiscal regime.
“We are also very pleased to see plans to extend the Investment Allowance to allow tariff income on third party access to be included, as well as greater certainty on decommissioning tax relief; which overcomes what has been a stumbling block to asset transfers.
“These measures, in addition to the further £20 million exploration package announced by the Prime Minister in January and the £180 million for the Oil and Gas Technology Centre as part of the City Region Deal are a welcome boost to the sector.
“We are pleased to have helped progress key pieces of work alongside HMT and industry via the three collaborative workstreams focusing on exploration, infrastructure and late life. OGA will continue to work closely with industry and Government to maximise economic recovery from the basin.”
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