Revised taxed field allowances23 Mar 2012 07:28
DEO welcomes the HM Treasury ("HMT") statement in respect of the package of changes to field allowances for companies operating in the UK and UK Continental Shelf.
The changes designed to increase investment and production in the North Sea are anticipated to directly impact DEO, in particular the new small field allowance against the current Supplementary Charge rate of 32%.
DEO estimates that its Perth Field Phase 1 recoverable resources will now be below the new and increased minimum threshold set by HMT of approximately 45 million boe, and therefore anticipates that it will benefit from the full amount of its 52.03% share of the increased field allowance of £150 million. This will reduce DEO's tax payable by approximately £25 million over the life of the field, improving project economics.
David Marshall, DEO Chief Executive Officer Comments:
"This is more encouraging news from the HM Treasury that will directly affect DEO, and is an encouraging demonstration of the Government's commitment to attracting oil and gas investment in the North Sea."