(MENAFN) British Chancellor George Osborne unveiled oil field tax breaks plan to support investment in older oil and gas fields in the North Sea, Reuters reported.
The move to revive a key part of the economy which has long been a driver of its prosperity comes as the government tries to push a weaker growth.
Osborne said that income from some mature oil fields would not be subjected to a supplementary tax charge in order to encourage them to maximize oil output.
The tax allowance will shield up to USD400.21 million of income from some projects in older fields known as brown field sites, Osborne added.
Last year's economic growth was trimmed by at least half a percentage point, as UK's oil and gas output fell considerably.
In March 2011, UK's coalition government increased a tax on oil and gas output to 32 percent from 20 percent, leading producers to lower their output. UK's oil and gas production already has been falling since 1999.
Industry body Oil and Gas UK expected the initiative to increase oil and gas recovery by 150 million barrels of oil equivalent in the near term.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.