FT: Lower, simpler taxes urged for North Sea oil and gas drillers
Companies drilling for oil and gas in the North Sea should be subject to lower, simpler and more predictable taxes, according to a review commissioned by the Scottish government.
Melfort Campbell, a former engineering executive who now carries out work for the oil producers’ trade body, has recommended changing the tax and regulatory regime to encourage more companies to drill.
Mr Campbell said that with oil and gas increasingly expensive to extract from the UK continental shelf (UKCS), producers needed extra incentives.
“The UKCS used to be like an exclusive nightclub with bouncers on the door only allowing celebrity VIPs access,” he said. “Now, it is more akin to a trattoria with waiters touting for business on the pavement outside.”