Osborne said the move aimed to “give companies the incentive to get the most out of older fields, creating jobs and delivering more revenue for taxpayers”.
While the allowance is expected to cost around £100 million ($160 million) a year, the government says that cost will be “significantly outweighed” by the tax revenues benefiting projects will ultimately generate.
Industry group Oil & Gas UK has welcomed the measure, which it estimates could spur new investment worth £2 billion and add 150 million barrels of oil equivalent to North Sea output.
Mike
