March 18th saw the Chancellor of the Exchequer give his Budget to Parliament. As the final budget before the general election, it showed a significant improvement in many important areas, including those that will affect the oil and gas sector. As experts in metal finishing for the oil and gas sector, including corrosion resistant coatings, NiTEC know that the sector provides a large number of highly skilled jobs, energy security and makes a massive contribution to the economy of the UK.
Bold and Immediate Reforms to Oil and Gas
The Chancellor has announced ‘bold and immediate’ reforms to oil and gas tax, with the intention of easing the tax burden on oil and gas companies operating on the UK Continental Shelf. The measures will save the industry approximately £1.3 billion over the next 5 years, while boosting production by 15%.
Encouraging Investment in the North Sea
In order to encourage investment in the North Sea, the UK government will be introducing a new Investment Allowance and reducing the supplementary tax charge on oil and gas companies from 30% to 20%, backdated from January 2015. These changes are expected to increase oil production by around 15% by 2019, and drive £4 billion of new investment over the next five years. The rate of Petroleum Revenue Tax paid on older oil and gas fields will also be reduced from 50% to 35% from next year.
In the Budget document, the government said that its changes would “send a strong signal that the UK is open for business and ensure the [UKCS] remains competitive as the basin matures” and “extend the life of key infrastructure”. Mr Osborne announced that the Government would also fund to assess the potential in “under-explored areas” of the UK North Sea.
Metal Finishing Services for Oil and Gas Applications
We provide a range of metal finishing and metal plating services for both onshore and offshore oil and gas applications. Our revolutionary metal coating SeaTEC100 is a solution to increase the longevity of components used in subsea conditions that protects mild steel from salt spray corrosion and marine corrosion for an extensive period of time. For more information about corrosion resistant coatings, please call NiTEC UK on 0845 224 3571 or email firstname.lastname@example.org