Thursday 8 October 1998

UKOOA Responds To Government Energy Review

UK Offshore Operators Association (UKOOA) is disappointed that the Secretary of State for Trade and Industry sees the need to continue the moratorium on gas-fired power generation development. This will impact on the oil and gas exploration industrys investment and employment.

Furthermore UKOOA is concerned that the Secretary of State has not indicated a clear timetable for the conclusion of the moratorium. This will create additional uncertainty for the industry.

James May, Director General of UKOOA, which represents oil and gas companies operating in UK waters, said: A recent poll of UKOOA members has indicated that the moratorium has already adversely impacted on investment confidence for the majority of oil and gas producers.

Without a firm timetable for the end of the moratorium producers will be unable to plan ahead with any degree of certainty with regard to the Governments energy policy. It is likely that there will be delays in investment decisions to bring on the production of marginal fields and some projects may be deferred indefinitely.

This will have serious implications for employment throughout the industry and related supply industries.

UKOOA will respond to the White Paper in detail and will be seeking further discussions with the Department of Trade and Industry.

For more information, please call 020 7802 2400.