UK Government Launches Consultation on Design of Levy for Oil and Gas Authority
The British government continues in its effort to support domestic oil and gas production, launching on Monday a consultation on the design of the levy to fund the new Oil and Gas Authority (OGA).
“We are working at a great pace to establish and empower the OGA to be a strong and influential regulator, equipped with the necessary powers to regulate and steward the UK Continental Shelf” Secretary of State Edward Davey commented on Monday.
Davey confirmed the government’s commitment to contribute £3 million per year commencing April 2016, adding that the OGA will the be funded by a combination of the extant fees and a new levy on the industry.
“We intend that the OGA will begin collecting the levy in October 2015, subject to regulations” he explained, adding that the consultation will be open for four weeks.
In his 2015 Budget Speech, Chancellor George Osborne committed to a £1.3 billion support to the oil and gas industry.
Also on Monday, UK onshore-focused Europa Oil And Gas reported that its Kiln Lane-1 conventional exploration well will be plugged and abandoned, as the sandstones encountered are water wet. The well is on Licence PEDL 181 in Northeast Lincolnshire.
“While we are disappointed with the outcome, Kiln Lane was drilled on schedule, on budget and safely… Kiln Lane was the first well to be drilled on this large licence where multiple leads have been identified” Europa’s CEO Hugh Mackay commented.