SBNN: Nicola Sturgeon Calls for Urgent Consultation to Boost North Sea Exploration
First Minister Nicola Sturgeon has called on the UK Government to urgently consult on incentives to boost North Sea exploration.
Last year, exploration in the area reached its lowest level in 20 years, with only 14 exploration wells drilled, compared to 44 in 2008.
A report this month by Oil & Gas UK found that confidence in the sector is at a record low. This was reinforced by the Office for Budget Responsibility, which cut its projection for North Sea oil and gas tax receipts between 2020-21 and 2040-41 by £34.5million to £2.1billion.
In December 2014, the UK Government committed to further work on options for supporting exploration through the tax system.
Speaking at the annual Oil and Gas UK Conference in Aberdeen, the First Minister suggested that financial incentives, such as a new exploration tax credit or expansion of the investment allowance, will allow companies to find new oil discoveries.
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