UK explores tax changes to encourage oilfield decommissioning.
The UK Treasury and North Sea oil companies are studying plans for tax relief on dismantling oilfields to attract investment in decommissioning the sites.
Government officials met with industry representatives today for the first time since setting up the so-called Fiscal Forum in September to discuss taxes and ways to spur investment in marginal fields, the Treasury said in an e-mailed statement.
“The government committed to working with industry with the aim of announcing further, long-term certainty on decommissioning at budget 2012,” it said. The authorities will consider introducing a new category of field that would qualify for a field allowance, it said.
Last year, the oil industry criticized a U.K. tax increase on oil producers’ profits to 62 percent from 50 percent.
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