Prolific and Proven Resources
The UKCS has a set of world class petroleum basins with a total of 43 billion barrels of oil equivalent recovered to date and a remaining 10-20 billion barrels of oil equivalent yet to be recovered (Oil and Gas Authority 2017, Oil & Gas UK 2017).
As a result of more than 50 years of upstream industry activity there is a deep understanding of the basins geology. There is a range of different operating environments to satisfy different risk appetites, from West of Shetland deep water to the shallow waters of the North Sea.
Commitment to Maximising Economic Recovery
The UK’s supportive regulatory, the Oil and Gas Authority, is committed to cooperating with companies and investors to Maximise Economic Recovery from the UKCS and forging the UK as a global leader in industry stakeholder collaboration.
Average unit operating costs have fallen by over 45% and production efficiency has increased from 60% in 2012 to 73% in 2016, leading to a production increase of 16% from 2014 to 2016 (Oil & Gas UK 2017).
Easily Accessible Market
Extensive infrastructure and a world class supply chain reduces the capital required to connect to the proximal market. The Oil and Gas Authority provides a flexible and innovative offshore licensing regime that provides access to highly attractive acreage and supportive technology.
Highly Competitive Fiscal Regime
The UK provides one of the most geopolitically stable havens for investment in the world. Recent reductions in headline tax rates show a strong willingness by the UK Government to encourage inward investment.
With an effective rate of tax of below 40% for new fields this globally ranks as a top quartile fiscal regime. Additionally further fiscal incentives exist to promote capital investment through a unique investment allowance system.