UK’s Brown exempts redeveloped North Sea fields from PRT

LONDON (AFX) – The UK government has exempted abandoned North Sea gas fields which have undergone redevelopment and became productive again from the petroleum revenue tax.

In his pre-budget report, Chancellor Gordon Brown said: ‘The government today announces the removal of fields from the charge to petroleum revenue tax if they are redeveloped following full decommissioning.’

The new ruling — which will take effect in July next year — was reached after a series of discussions with North Sea producers on issues affecting the ’stability’ of the North Sea tax regime, he said.

The PRT was abolished in 1993. However, fields that were developed and started production prior to that year continue to pay the tax.

Forbes