UK Chancellor George Osborne has announced that reductions in tax on North Sea oil and gas that will go ahead in his latest budget.
The new budget announced the broadening of types of investment that qualify for allowances.
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As outlined in the March Budget 2015, the UK Government will expand the North Sea investment and also cluster area allowances to include additional activities, which are expected to increase economic output.
In March, Osborne unveiled measures over five years that were worth £1.3bn and aimed at increasing North Sea oil production, The Telegraph reported.
Commenting on Osborne’s Emergency Budget Permasense marketing director Dr Jake Davies told Rigzone: "The industry welcomes continued support from the UK Government.
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"However, operators in the UK North Sea will remain focused on generating maximum return from the information and resources at their disposal.
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By GlobalData"Therefore, we will still see a demand for innovative, cost-effective solutions to safely enhance and maintain production operations for existing assets, without increasing operational risk or compromising safety."
Air Energi Group commercial director Graeme Lewis stated the industry is facing various challenges in the North Sea and the latest approach may risk more jobs in the sector.
This is a tough time and the industry needs more support from government at the moment, Lewis said.
Image: North Sea in Atlantic Ocean. Photo: courtesy of Southpark.
