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Monday 28th of June 2010
April 23, 2009    

Budget boosts North Sea oil fields

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by Peter Charalambous

In yesterday’s budget, the chancellor announced that there will be new measures introduced to aid support for smaller and less profitable oil fields which will hopefully bring 2 billion barrels of oil to the surface.

It is hoped that the measures will cut oil imports which will benefit the balance of payments, as well as boost tax revenues for the Treasury.

At present there are more than 160 oil companies working on the exploration and production of North sea oil and this measure is a timely boost for the industry.

Since the announcement oil explorer, Nautical Petroleum Plc, shares increased by 25 percent as the budget announcement boosted the value of its North Sea fields by nearly 100 million pounds.

The new field allowance means that the company will pay less tax for qualifying new developments which in turn will increase investment in the region as areas of Scotland are wholly dependent upon the industry.

The Oil and Gas Independents’ Association, which supports small and mid-sized companies, said it was an important measure that will help the UK remain competitive and combat the fall in exploration activity caused by the fall in the price of crude oil.

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Tags: , , Nautical Petroleum Plc, , North sea oil, Oil and Gas Independents' Association