Increasing decommissioning support could boost the value of older North Sea oil and gas fields by almost £500 million, according to the Scottish Government.
New analysis of fields nearing decommissioning has found their remaining value could rise by more than 50% if there were successful measures to reduce costs and increase production.
Speaking as part of a two-day industry visit to Aberdeen, Energy Minister Paul Wheelhouse called on the Chancellor to include measures in his Autumn Statement that improve access to decommissioning tax relief and stimulating exploration, as well as clarity on the use of loan guarantees.
The Minister added without investment and activity, there is the risk of "losing vital capacity and skills" to support production and "maximise economic recovery from the North Sea".
"Scottish Government analysis has identified 45 unsanctioned potentially commercial fields within the North Sea with the potential to unlock around two billion barrels of oil and gas, however this will require around £39 billion in capital expenditure," he said.
"Without greater investment and activity we risk losing vital capacity and skills that will support production and ensure we maximise economic recovery from the North Sea. The Scottish Government believes the oil and gas industry can have a bright future. The Scottish Government is taking action where we can to help the industry, but the Chancellor must also step up to the plate and do all that he can to support the sector."
(LM/MH)
Time and date
CONSTRUCTION DIRECTORY
Construction News
21/11/2016
Energy Minister Calls For Increased North Sea Decommissioning Support
Latest Construction News
01/05/2024
GRAHAM has announced the start of construction work on a new £59m low-carbon development in Edinburgh which combines student flats, build-to-rent and affordable homes. The Burnet Point scheme in Abbey Lane is the first-ever mixed-use residential development of its kind by Unite Students, one of ...
01/05/2024
A groundbreaking ceremony has marked the start of the next major phase of works on the replacement development at Liberton High School. Contractor Balfour Beatty welcomed Head Teacher Alison Humphreys, current high school and primary school pupils who will be educated at the new school, and ...
01/05/2024
Scottish housebuilder, Springfield Properties, has signed a new £10 million contract to deliver affordable housing for Moray Council. The Group will receive funds from the sale of the land to Moray Council in the current financial year and the design and build phase, which accounts for the vast ...
01/05/2024
Consulting and engineering firm, Wood, has been awarded a new decarbonisation contract by TotalEnergies (TEPUK) to support flare gas recovery in the North Sea. The 23-month contract, part of the Elgin-Franklin Flare Gas Recovery System Project, follows Wood's successful completion of a field study ...
01/05/2024
The CCG Group has welcomed the news that they have received seven nominations across six categories at this year's Scottish Home Awards. The Scottish Home Awards is one of the most prestigious in the Scottish housing sector and are set to take place at a glitzy award ceremony on the 13th of ...
01/05/2024
SSEN Distribution has announced month-long programme of infrastructure upgrade works at Loch Ness, to improve the reliability of supplies to over 1,300 homes and businesses, as well as boosting network capacity. The project starts on 2 May and is scheduled to finish by the end of the month. Teams ...
01/05/2024
SSEN Transmission has announced the successful completion of the final phase of the new Port Ann to Crossaig electricity transmission line, after almost three years of construction. Supported on 148 new steel-lattice towers, the new line is designed to be more resilient in extreme weather events, ...
01/05/2024
National Manufacturing Institute Scotland (NMIS) has been announced as a double winner at this year's British Council of Offices (BCO) Regional Awards for Scotland. The project – developed by Morrison Construction on behalf of University of Strathclyde – was successful in the Corporate Workplace ...
01/05/2024
Perth & Kinross Council has announced that a restoration project on Crieff's 130-year-old Murray Fountain will get underway this month, The improvement project, which was announced last year, will see the James Square landmark's masonry repaired and repointed, as well as electrical works to ...
01/05/2024
The Scottish Government has launched a public consultation on proposals to replacing the UK Government's Industrial Injuries Scheme in Scotland. Views are sought on how the Scottish Government's planned Employment Injury Assistance should be delivered and on the next steps for introducing this ...