Oil and Gas UK, the group representing the UK oil and gas industry, voiced its support for all but one of several measures announced in the coalition government’s annual budget speech, which will influence the offshore production industry.

In particular, a policy to implement the recommendations made earlier this year by Sir Ian Wood for the UK Continental Shelf (UKCS) received especially strong support, and the group also welcomed George Osborne’s announcement of a new allowance for ultrahigh-pressure, high-temperature fields. Only one measure was fully rejected by Oil and Gas UK, which concerned higher taxation for bareboat chartering; the group believes this will increase day rates for drilling rigs and floating accommodation vessels.

Patrick Phelan, Managing Director of Aquaterra Energy, said: “Aquaterra Energy is pleased to note strong support for UK industry from the Finance Minister, and welcomes the implementation of recommendations made by Sir Ian Wood. This policy alone has the potential to add £200 billion to the UK economy over the next 20 years, and the further development of ultrahigh-pressure, high-temperature fields mean we can expect continued growth for the UK oil and gas industry for the foreseeable future.”