The UK oil and gas industry will be looking for a firm step towards resolving the fiscal uncertainty surrounding North Sea decommissioning when Chancellor George Osborne delivers his 2012 Budget on March 21, according to business advisory firm Deloitte.

Over the next decade, the UK Continental Shelf (UKCS) can expect to see a number of fields and installations cease production and commence decommissioning, potentially leading to the loss of critical infrastructure.

Long term, over the next 30 years, almost 500 platforms, 8,000 wells, 4 million tons of steel and several hundred subsea wells, manifolds and pipelines will need to be decommissioned in the North Sea area*.

With UK costs projected to be between $40bn and $50bn*, Derek Henderson, senior partner at Deloitte in Aberdeen, says oil and gas companies are looking for a clear commitment from the Government on the future tax treatment of decommissioning costs:

Tags: Deloitte