UK offers £5m for North Sea oil and gas exploration

UK Chancellor Philip Hammond has announced a £5 million fund to support new oil and gas exploration in the North Sea. The funding will be used by the Oil and […]

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By Priyanka Shrestha

UK Chancellor Philip Hammond has announced a £5 million fund to support new oil and gas exploration in the North Sea.

The funding will be used by the Oil and Gas Authority (OGA) to survey underexplored areas of the UK Continental Shelf (UKCS).

The government believes its work with industry on new subsea technologies could help unlock 400 million barrels of oil and gas from the North Sea and £3 billion of additional value to industry.

Mr Hammond said: “The £5 million funding I am announcing will help exploration to find potential new deposits and boost prospects for jobs in Aberdeen and the surrounding area. This continues the UK Government’s extensive package of tax and funding support for the industry and the wider Scottish economy.”

The government is also backing plans to establish Aberdeen as a global leader in decommissioning.

Tax relief for decommissioning covers around 40% of the total cost for UK firms and is forecast to be worth around £24 billion between now and the 2050s.