Clarity on N Sea shutdown costs

The chancellor yesterday provided certainty on the tax relief oil and gas companies will receive when shutting down old assets in the North Sea, in a move welcomed by oil and gas leaders. The first contracts with the industry are due to be signed later this year, and a model decommissioning deed will be published alongside the Finance Bill 2013. “The measures announced today will for the first time ever give companies the certainty they need over the tax treatment of decommissioning,” said Malcolm Webb, head of Oil & Gas UK.