UK oil and gas industry has welcomed the UK government’s inclusion of Transferable Tax History (TTH) in its draft Finance Bill clauses.
TTH is designed to promote additional investment in the North Sea by enabling more offshore assets to change hands, and aids new owners looking to provide fresh investment to mature oil and gas fields.
Mike Tholen, Upstream Policy Director at Oil & Gas UK, described the draft legislation as “an additional tool in the deal toolkit, with the potential for bringing new investment to the basin, according to a report by Offshore.
“TTH will help increase recovery from existing fields and encourage fresh investment which will both help generate activity for our hard-pressed supply chain. It will also help extend the lives of many mature fields and postpone decommissioning.
“Adopting this measure makes it clear that the Treasury recognizes the need for a predictable fiscal regime as the basin matures, which is critical in ensuring it remains competitive,” Tholen told Offshore.
Offshore further reported Tholen as saying his association would work with, to help the government enact these measures to be available for use to industry from Nov. 1.