Tax Allowances: Offshore Industry

HM Treasury written question – answered on 17th November 2015.

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Photo of Grahame Morris Grahame Morris Opposition Whip (Commons)

To ask Mr Chancellor of the Exchequer, which companies have signed decommissioning relief deeds with his Department.

Photo of Grahame Morris Grahame Morris Opposition Whip (Commons)

To ask Mr Chancellor of the Exchequer, how many decommissioning relief deeds relating to decommissioning activity in the UK Continental Shelf have been signed to date; and what the total value of such deeds is to the (a) public purse and (b) decommissioning industry.

Photo of Damian Hinds Damian Hinds The Exchequer Secretary

At Budget 2013, the government announced it would begin signing decommissioning relief deeds. These deeds represent a new contractual approach to provide oil and gas companies with certainty on the level of tax relief they will receive on future decommissioning costs.

Since October 2013, the government has entered into 72 decommissioning relief deeds. Oil & Gas UK estimates that these deeds have so far unlocked more than £3.5bn of capital, which can now be invested elsewhere.

The government committed to report to Parliament every year on progress with the deeds. The report for financial year 2014-15 can be found at:

/wms/?id=2015-07-21.HCWS162.h.

The government does not publish the names of companies with which it has entered into decommissioning relief deeds as this information is commercially sensitive.

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