Statoil to resume North Sea drilling / News / The Foreigner

Statoil to resume North Sea drilling. Norwegian Statoil has announced that it will resume its North Sea operations following tax concessions by the UK government. “The negative impact from the tax increase proposed in March has been neutralised for the Mariner investment and the project is now back on track,” said a Statoil spokesperson. “We will resume technical and commercial work with full speed.” British Chancellor George Osborne proposed lowering the windfall tax threshold on oil companies trading in the UK after a public outcry over their profits. However, in a bid to ease tensions between the government and the oil companies, Chancellor Osborne announced that tax relief would be increased from 6% to 10%.

statoil, marinerfieldoperations, ukchancellorgeorgeosborne



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Statoil to resume North Sea drilling

Published on Thursday, 7th July, 2011 at 09:07 under the news category, by Gareth Corfield.

Norwegian Statoil has announced that it will resume its North Sea operations following tax concessions by the UK government.

Statoil Forus
Statoil Forus
Photo: Øyvind Hagen/Statoil


“The negative impact from the tax increase proposed in March has been neutralised for the Mariner investment and the project is now back on track,” said a Statoil spokesperson. “We will resume technical and commercial work with full speed.”

British Chancellor George Osborne proposed lowering the windfall tax threshold on oil companies trading in the UK after a public outcry over their profits. However, in a bid to ease tensions between the government and the oil companies, Chancellor Osborne announced that tax relief would be increased from 6% to 10%.

This raise will allow companies to offset tax payments against projected future profits. Originally, the government planned to increase the supplementary tax rate on North Sea oil profits from 20% to 32%.

As the tax rise has now been abolished, Statoil is restarting production in UK waters. Statoil’s biggest UK oil field, Mariner, is located 30km off the southern coast of Ireland. Following the government’s decision to raise tax rates in March, the company had suspended operations at Mariner.

Statoil did not publicly comment on why it had suspended operations, but a similar sized UK rival, Centrica, ceased activities at its largest UK gas field. Centrica claimed that the tax hike had made it uneconomical to continue.

The oil and gas reserves at Statoil’s Mariner field have been valued at $10bn US dollars.



Published on Thursday, 7th July, 2011 at 09:07 under the news category, by Gareth Corfield.

This post has the following tags: statoil, marinerfieldoperations, ukchancellorgeorgeosborne.





  
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