The Government today approved a £1.6billion oil project in the North Sea which was made possible by the Chancellor’s latest oil and gas tax allowance.
Energy Minister John Hayes said the Talisman project showed a “new wave” in interest in the North Sea oil fields.
It will create a further 100 million barrels of oil equivalent from so-called “brownfields”, the existing oil fields of Montrose, Arbroath, Brechin, Arkwright, Carnoustie and Wood.
The MonArb Area Redevelopment Project also includes consent for the new Cayley and Shaw fields.
Energy Minister John Hayes said: “Together with industry, we are creating a fertile ground for new investment that is in the best interests of the UK.
“The North Sea has been a bedrock of the UK economy, creating jobs, investment and energy security for nearly 50 years. We must do all we can to prolong the economic life of our oil rich seas and make the most of this precious resource.”
The Treasury’s Brown Field Allowance (BFA) announced earlier this year was key to unlocking the project, said DECC, as it shields a portion of income in qualifying fields from the supplementary charge paid by companies on their production.
Economic Secretary Sajid Javid said this was “further evidence” that the Government’s efforts to stimulate investment in the North Sea are paying dividends.”