O&G UK delighted with Government’s response to Wood Review

Oil & Gas UK has welcomed the announcement by the Energy Secretary, the Rt. Hon. Edward Davey MP, of Government support for Sir Ian Wood’s UKCS Maximising Economic Recovery (MER UK) Review.

Malcolm Webb, Oil & Gas UK’s chief executive, said:

“The offshore oil and gas industry welcomes the reaffirmation of Government support for the Wood Review. We are encouraged by the proposed approach to implementation and look forward to the establishment of the Oil and Gas Authority (OGA), headquartered in Aberdeen. We need a fresh, well-resourced arms-length regulator to put the principles of the Wood Review into practice.

“We are delighted to see Government commitment to providing a share of the future funding of the OGA, which is an excellent demonstration of the commitment to the tripartite approach called for by Sir Ian.

“The Secretary of State challenges the industry to match the Government’s commitment to Sir Ian’s recommendations. I can assure him that our industry is committed.”

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At the core of Sir Ian Wood’s MER UK is a tripartite collaboration between the industry, OGA and HM Treasury (HMT) to maximise economic recovery of the UK’s oil and gas resource. HMT’s announcement on Monday (July 14) launching a formal consultation on the North Sea tax regime is therefore timely and Oil & Gas UK looks forward to working with the new Exchequer Secretary to the Treasury, Priti Patel MP, to realise the full economic potential of the UKCS.