Anthony Lobo, UK Head of Oil & Gas at KPMG explains how the fall in the Brent crude oil price has serious implications for North Sea oil production and government revenues.
“The dramatic fall in the Brent crude oil price to a new five year low on Monday has serious implications for North Sea oil production and government revenues. The report by Sir Ian Wood in February 2014 talked about maximising oil recovery in the North Sea. Though the recent price dip could be the nail in the coffin for achieving that.
“Many of the operators are struggling with containing their costs, accessing aging infrastructure to bring the oil to the UK, and making any new finds worth developing under the current tax regime. The industry will be waiting for some good news in the Autumn Statement on Wednesday or there could be some very glum faces in the industry.”
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Ann Burton, KPMG Press Office
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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 11,500 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.