Tag: North Sea

Plans to invest $4.8 billion to redevelop the Schiehallion and Loyal oilfields British energy company BP said it aims to coax 450 million barrels of oil from the North Sea even though London is asking for a higher levy on their yields.BP said it plans to invest $4.8 billion to redevelop the Schiehallion and Loyal oilfields west of the Shetland Islands.The investment comes as London increased the levy on oil production from 20 percent to 32 percent to the ire of energy companies.A spokesman for the energy company was quoted by The Daily Telegraph in London as saying the value of projects on the regional continental shelf was lowered because of the tax increase."The tax increase certainly didn't make the decision any easier however the size and scale of this development means we are able to progress," the spokesman said.BP's investment will target a new floating, production, storage and offloading vessel that could process up to 130,000 barrels of oil per day and store more than 1 million barrels of oil.BP Chief Executive Officer Bob Dudley had said the company was committed to long-term development in the North Sea. BP gets about 7 percent of its total and natural gas ...

3bn project The energy firm said the Schiehallion and Loyal oil fields have produced 400m barrels since 1998 and a further 450m could still be available, keeping them open until 2035 at least.The move comes despite warnings by the Oil & Gas UK lobby group that the chancellor's surprise 2bn levy on North Sea oil and gas companies, announced in this year's budget to ease the pressure on petrol prices, could put in doubt 12bn of investment in the North Sea and the creation of 15,000 jobs.BP's chief executive, Bob Dudley, said the move reflected the group's strategy of investing in oil fields where it had "extensive knowledge". He added: "BP has over 40 years' experience in the North Sea, during which time it has developed a strong set of assets. We are committed to maintaining a high-quality business there."The Treasury pounced on the announcement. Justine Greening, economic secretary to the Treasury said: "This shows the North Sea basin remains an attractive area for significant levels of new investment, and the government will continue to work alongside oil and gas companies to support growth and jobs in the UK."The North Sea accounts for about 7% of BP's total oil and ...

Aim to help firms operating in smaller and less profitable oil fields Britain will boost tax support for North Sea oil companies to help firms operating in smaller, less profitable oil fields, softening an earlier tax increase that had prompted warnings about the future of the nation's energy supply.The Treasury said on Tuesday it would raise the annual rate of the Ring Fence Expenditure Supplement to 10 percent from 6 percent. It also said it would continue to consult oil companies on finding new categories of field allowance.The move follows the government's surprise tax increase on North Sea oil output in March, which led the industry to warn that investment in oil and gas would suffer, increasing imports and driving UK jobs abroad.Oil companies cautiously welcomed the move. Norway's Statoil said it would resume preparatory North Sea work suspended in the wake of the tax rise, while a UK trade group called it "constructive" and the shares of smaller firms rose."They're alleviating some of the damaging effects of the tax increase and we could see more of this as the companies lobby the government," said Sanjeev Bahl, analyst at Numis."It is really letting companies increase the value of their tax ...

One of the great success stories of modern British industry North Sea oil and gas is one of the great success stories of modern British industry, which is why Chancellor George Osborne must take a long hard look at the taxes he imposed in his last Budget.Most businesses think this Government has done a reasonable job in cutting tax and red tape on business compared to its Labour predecessor.But its failure to redraft the new levy on the North Sea has been one of its worst own goals.British Gas owner Centrica has mothballed its South Morecambe field because the extra tax makes it more economic to buy foreign gas that pump it up through its own rigs.There is also evidence that producers are putting the brakes on new investment in the British sector of the North Sea in favour of Norway.At a time when so much of British industry is under the cosh, and the global oil industry is going through turbulent times, the last thing the North Sea needs is self-inflicted problems.The industry is lobbying hard for a rethink. For the sake of jobs and investment the Chancellor should swallow his pride and do a nifty about about turn.Source: ...

It plans to invest about 20m One of the world's largest offshore oil companies announced today that it will be investing 20m in its North Sea operations.Swire Oilfield Services said it will be spending the funds on its operations in Aberdeen, as part of a 50 million global investment drive.According to the firm, the new cash will bring 20 new jobs to Aberdeen and pay for new headquarters in the city's Altens area, construction of which will begin in July next year.Earlier this year Chancellor George Osborne announced 2 billion of new taxes on the windfall profits of oil companies. Industry body Oil & Gas UK claimed the move could jeopardise tens of thousands of jobs.However, Swire chief operating officer Rupert Bray said he is "extremely positive" about growth in the industry. He said: "Whilst there may be some uncertainty in the North Sea due to recent tax changes, the global offshore energy industry presents a real opportunity to expand the company's global market presence."There is currently a high demand for safe, reliable, high quality and internationally approved offshore cargo-carrying units around the world."Meanwhile, Oil & Gas UK has updated its guidelines for tanker loading to try to reduce the ...