Extending The Shelf Life

Recently, the UK Government has been putting more emphasis on the role of the UK Continental Shelf ("UKCS") in aiding the UK's recovery from economic recession. The Chancellor has identified the UKCS, with its oil and gas reserves, as a significant source of income for the Government, particularly at a time when the UK economy continues to struggle against a difficult global climate.

However, the charges levied on the UKCS by the Government have been increasingly criticised by the oil and gas industries, which are feeling the strain as the UKCS shoulders a significant burden in supporting the economy. This criticism has grown louder of late due to a further tax rate increase in the 2011 Budget. However, there is an indication that the Government's attitude is changing slightly in the face of a continuing downturn, as it seeks to increase productivity and maximise the overall tax revenue it can extract from the UKCS.