Fiscal review crucial to encouraging exploration
19 March 2014
Derek Leith, head of oil and gas taxation and office managing partner at EY in Aberdeen, comments on the review of the fiscal regime for exploration announced in today’s (Wednesday 19 March) Budget
“The ongoing decline in the number and success of exploration wells in the UKCS is a concern for both industry and government with the recent Wood Review stating that the government should consider fiscal changes as a way of arresting this decline.
“Today’s announcement of a review of the fiscal regime as regards exploration presents clear evidence that the recommendations contained within the Wood Review are being acted upon.
“Successful exploration is an absolute pre-requisite to the maximum exploitation of hydrocarbon reserves in the UK Continental Shelf. A number of factors have contributed to the decline in exploration in recent years with the fiscal regime being one of the most significant aspects."
For more information on the 2014 Budget, visit the EY 2014 Budget page.