UK OFFSHORE OIL AND GAS INDUSTRY RESPONDS TO BUDGET STATEMENT

UK OFFSHORE OIL AND GAS INDUSTRY RESPONDS TO BUDGET STATEMENT Whilst the UK offshore oil and gas industry welcomes the Chancellor's provision to increase capital allowances on first year investment in the North Sea, it is surprised and concerned at the decision to introduce a 10 percent supplementary charge on North Sea profits. The UK Offshore Operators Association (UKOOA), which represents 30 oil and gas exploration and production companies operating in the UK, fears that this could undermine investor confidence in the long-term viability of the North Sea, the very thing that the Industry has been working with Government, through PILOT, to achieve. UKOOA welcomes the proposal to consult the Industry on the abolition of Royalty which could help prolong the life of pre-1982 fields. Royalty is a 12.5 percent tax on production from fields which received development consent on or before 31st March 1982. Government tax take from UK offshore fields ranges from 30 percent to nearly 70 percent. The Industry is currently evaluating the full negative impact of these different measures. - ends - For further information, please contact: Trisha O'Reilly Tel. 0207 802 2422/2400 UKOOA Communications Team Fax. 0207 802 2401 232-242 Vauxhall Bridge Road Email: toreilly@ukooa.co.uk London SW1V 1AU Pager: 07659 153069 Website: www.oilandgas.org.uk ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/04/17/20020417BIT01420/wkr0001.doc http://www.waymaker.net/bitonline/2002/04/17/20020417BIT01420/wkr0002.pdf