Tuesday 20 January 2004

UKOOA Welcomes Exploration Expenditure Supplement but says Government Must Keep Eye Firmly On The Bigger Picture

The UK Offshore Operators Association welcomes todays details provided by Treasury on how the Exploration Expenditure Supplement will be implemented in the North Sea and is pleased that the Government recognises the urgency of the situation by backdating the measure to the start of the year. The measure was first announced by the Chancellor in his Pre Budget statement in December.

Steve Harris, UKOOAs acting director general, said:

This measure is specifically targeted at new entrants to encourage them to carry out exploration in the North Sea. We hope it will have some impact, when exploration and appraisal activity in the UK continental shelf has slumped significantly in recent years.

It is a small step in the right direction and is to be welcomed. However, the Government mustn't take its eyes off the bigger picture. There is a much larger prize to be won, with some 10-20 billion barrels of oil equivalent still to be explored, appraised and developed. More action is required, and Government needs to work with Industry to crack the considerable remaining potential of the North Sea.

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Note to Editors

The UK Offshore Operators Association (UKOOA) is the representative organisation for the UK offshore oil and gas industry. Its 29 members are licensed by the British Government to explore for and produce hydrocarbons in UK waters.

For more information, please call 020 7802 2400.