LONDON, UK --Britain's chancellor has not altered the UK petroleum tax regime in his latest budget, despite calls for remedial measures from the UK Offshore Operators Association.
"UK offshore oil and gas producers have not been given any reduction in corporation tax and still continue to suffer under a punitive 50% rate for corporation tax, and a total tax rate of 75% on the production from its older assets," says Ukooa's chief executive Malcolm Webb.
"With cash flows from UK gas fields now under severe pressure and the average cost of new developments running at $25 per barrel, doing nothing is imply not good enough. The Treasury needs to wake up to current realities."
Ukooa's' latest member investment and activity survey showed a drop in forecast UK shelf capital investment for 2007 of $1.88- 2.76.5 billion to around $7.52 - 8.46 billion, after three years of growth.