Edward <a href=Davey” height=”450″ src=”https://www.offshore-technology.com/wp-content/uploads/static-progressive/nri/offshore/news/Edward_Davey.jpg” style=”padding: 10px” title=”Edward Davey MP” width=”300″ />

The UK Government’s latest tax relief in oil and gas reserves has attracted billions of pounds worth of projects for British companies and created thousands of new, highly skilled jobs in the country, said Secretary of State for Energy and Climate Change MP Edward Davey.

Addressing MPs at the British Offshore Oil & Gas Industry All Party Parliamentary Group annual reception at Westminster, Davey said the oil and gas industry is vital to meeting the nation’s power and economic requirements and will be fundamental for the country’s energy policy in the decades to come.

"A record breaking offshore licensing round and investment highs, the North Sea is experiencing a recent renaissance. We are working in partnership with the oil and gas industry to create a positive investment environment and a bright future for the North Sea, securing thousands of jobs across the UK," Davey said.

"The spirit of the North Sea pioneers will be needed to drive this government’s ambition to power the country, provide prosperity and protect the planet for future generations."

Oil & Gas UK chief executive Malcolm Webb said that the improvements brought in by the tax rule resulted in the growth of capital investment to more than £11bn in 2012, and at least 30 new offshore oil and gas developments have been approved in the last twelve months.

Webb noted that the administration has awarded 167 new licences in the latest licensing round to explore petroleum on the UK continental shelf. About £8bn of fresh investment and thousands of new jobs were announced across various offshore projects in the last six months.

"This upturn is set to continue and presents excellent business opportunities right across our world-class supply chain to the benefit of the UK’s energy security, balance of trade and tax revenues," Webb added.

"Davey said the oil and gas industry is vital to meeting the nation’s power and economic requirements."

"With up to 24 billion barrels of oil and gas still to be extracted, this industry is set to provide energy, jobs and tax revenues to people across the UK for many decades to come."

One of the major investments that took place in the last six months was Statoil’s investment of £4.3bn in its heavy oil Mariner project, which created 700 new jobs.

Talisman Energy devoted £1.6bn to boost production at its Montrose Arbroath field, which created more than 2,000 jobs.

GDF SUEZ invested £1.4bn in its Cygnus gas development project, which is expected to create 1,200 jobs, while Dana Petroleum has announced it will spend £1bn to develop its Harris and Barra fields.


Image: Secretary of State for Energy and Climate Change MP Edward Davey. Photo courtesy of Business, Innovation and Skills Office.