Pre Budget Report Provides Boost To North Sea Oil

A pre-budget report (PBR) by the British Chancellor of the Exchequer, Alastair Darling, contains provisions to reform the North Sea fiscal regime that have been welcomed by oil and gas companies operating offshore the UK. The PBR includes measures to introduce fiscal incentives, to facilitate trading assets, to promote change of use schemes and to provide petroleum revenue tax (PRT) relief for decommissioning costs in certain cases. The changes are designed to stimulate new activity in the North Sea and to maximise the recovery of the 17-20bn barrels (bbl) of oil that the government claims remains in the North Sea.

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