U.K. oil company advocacy Oil & Gas UK is urging the U.K. government to adopt a Norway-style exploration rebate and to cut an extra corporate tax on new oilfield projects, the organization confirmed Tuesday.
OGUK was urging a government rethink on tax policy while still feeling the glow of a landmark legal ruling that determined the off-time offshore workers get is “more than” their fair share. OGUK said workers were getting “typically over 26 weeks a year”.
Through union activity, Norwegian offshore workers have secured far more free time than their U.K. counterparts, though both operate in the hazardous North Sea.
Oil companies and unions are said to have spent vast sums seeking a legal order outlining what’s seen as fair in the United Kingdom.
With Big Oil and The Unions bound by law, Oil & Gas UK chief exec Malcolm Webb said he would now look to the U.K. national budget “with the keenest interest”. In Norway, oil companies are refunded their exploration expenses in the following fiscal year, and he’s understood to want a similar deal for the U.K. North Sea.
“The Government must act now to assist small exploration and development companies by releasing accrued exploration reliefs to them to be spent on North Sea operations and … take the brake off investment in our industry,” a statement said.