Shetland Fields Now Set For Development With New Tax Break
“Shetland fields” is an area of interest to oil companies. It is an area of North Sea’s last frontier in Britain. Britain has moved a step closer to the development of Shetland fields by making a new announcement to extend the “new field allowance”. In this announcement, government has promised to provide the tax relief of £160 million approx for every gas field. According to the estimation, Shetland fields have 20% of oil and gas reserves in UK.
Understanding the importance of oil and gas fields in the UK and the impact of the oil and gas industry on the economy of the country, the government has also introduced a new type of license in the area of Shetland fields to attract more investment in this region. This new type of license is called “Frontier West of Shetland”. The license has extended the exploration period from 6 to 9 years. So this way oil companies will have double advantage of tax relief and extension of the exploration period.
The support that the Government has provided to oil and gas companies for exploring the area of Shetland fields will create more demand for the skills that this industry supports. This will result in increasingly more job opportunities in this area. Total, the leading French oil company is interested in investing £2.5bn to develop the Tormore and Laggan fields. Tormore and Laggan are the two largest fields in this area. Total is developing these fields to build a pipeline that is large enough to ship gas to the mainland from these fields. This investment step taken by Total will also motivate other oil and gas companies to develop the neighbouring fields and proceed with their plans. This step by oil and gas companies will help to benefit the country and it oil portfolio.
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