uHPHT tax allowance could be game changer for oil & gas industry
- Business & Finance
Three industry leaders from TOTAL E&P UK, Maersk Oil UK and BG Group will discuss the UK government’s proposal to introduce a new tax allowance for ultra-High Temperature High Pressure (uHPHT) oil and gas field clusters on the UK Continental Shelf (UKCS) at Oil & Gas UK’s forthcoming breakfast briefing.
The event, sponsored by Petrotechnics, takes place at the Aberdeen Exhibition and Conference Centre on June 3.
Mike Tholen, Oil & Gas UK’s economics & commercial director, said: “Reservoirs with uHPHT characteristics comprise one of the largest categories of yet-to-be explored resources on the UKCS, but they also represent some of the industry’s most technically and commercially demanding projects. The introduction of a number of targeted tax allowances has helped promote development of a range of difficult projects, such as those in deepwater environments. The proposed new uHPHT allowance could be a game-changer for the industry as it has the potential to attract £5-6 billion of investment in the near term in existing discoveries if pitched at the appropriate rate. Even more excitingly, the allowance will promote further widespread exploration around uHPHT hubs and builds on the Wood Review to encourage a regional development approach.”
Delegates attending the event will hear Philippe Guys, managing director, TOTAL E&P, share insights from his company’s experience in addressing the challenges of uHPHT projects as well as the successes that have been achieved. The potential impact of the new field allowance on future production from the UKCS provides the theme for a presentation by Martin Rune Pedersen, managing director, Maersk Oil UK.
Andy Samuel, managing director Europe E&P at BG Group, will discuss how the proposed fiscal measure could help to encourage broader collaboration around acreage near key infrastructure hubs and stimulate exploration in new areas.
Following the presentations, the guest speakers will participate in a panel session chaired by Mike Tholen.