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Project Insights

Cost-cutting needed to support UKCS growth

New exploration is needed to fully exploit the potential of the UK Continental Shelf. But with a tax rate of as low as 10%, it is up to the private sector to find the means New exploration is needed to fully exploit the potential of the UK Continental Shelf. But with a tax rate of as low as 10%, it is up to the private sector to find the means.
By Silvia Favasuli 22 March 2019 Europe & Russia / Exploration & Production 0 34066
The Andrew platform in the North Sea. (BP)

Oil and gas players operating on the UK Continental Shelf (UKCS) must cut costs and boost productivity if the ambitious targets set by the UK’s oil and gas regulator are to be achieved.

In a strategy document published last autumn, the Oil & Gas Authority (OGA) said it was aiming for £500 billion ($658 billion) of turnover and £420 billion of additional gross revenues from oil and gas activities by 2035. These targets are £150 billion and £140 billion higher respectively than the 2035 targets set...