UK BUDGET 2015: Six Ways It Will Affect The Industry In 2015

Tim Haïdar

On Wednesday March 18th, British Chancellor of the Exchequer, George Osborne commended his budget to the assembled Houses of Parliament. Below are the significant highlights for the British oil and gas industry:

  • A £1.3bn ($1.9bn) support package for the oil and gas sector package.
  • A reduction in the petroleum revenue tax (PRT) from 50 per cent to 35 per cent.
  • A 10 per cent drop in the headline supplementary corporation tax rate, bringing it down from 60 per cent to 50 per cent.
  • This brings the headline rates for oil and gas fields down from the current 60 per cent to 50 per cent and 81 per cent to 67.5 per cent for mature fields subject to PRT.
  • A £20 million ($29.4 million) stipend extended to the newly-formed Oil and Gas Authority (OGA) to commission seismic surveys for areas of the UK Continental Shelf (UKCS) with a lack of data.
  • Resultant breaks are mooted to bring an extra £4bn ($5.9 billion) of investment into the industry through 2020, increasing hydrocarbon production by 15% from 1.11 million barrels of oil equivalent per day (mmboe/d) to 1.27 mmboe/d.