ENERGY NEWS
9
AUGUST 2021
UK NORTH SEA
Energy Review By Tsvetana Paraskova
The progress in emissions reductions of the UK North Sea industry and the cost of decommissioning infrastructure, along with a number of supply contracts and asset sales, were the highlights in the UK oil and gas sector over the past month.
Total government revenues from UK Oil and Gas production stood at £248 million in the tax year 2020 to 2021, a drop of 71% compared to the previous year, the government said in July. Offshore Corporation Tax payments, including ring-fence Corporation Tax (RFCT) and Supplementary Charge (SC), declined by 61% year-on-year in net terms (that is, net of repayments) to £498 million. Over the past decade, government revenues from UK oil and gas production have decreased significantly, from £10.8 billion in 1984 to 1981 to £0.2 billion in 2020 to 2021, the government data showed. OGUK launched at the end of June a major plan to cut emissions of methane, of the world’s most potent greenhouse gases. The key actions in the Methane Action Plan 2021 include 50% reduction in methane emissions by 2030, a target of UKCS methane intensity below 0.20% by 2025, zero-routine flaring before 2030. In addition, each company and offshore installation will develop its own Methane Action Plan by 2023, installations will seek to validate methane quantification wherever practicable by relevant measurements, and the industry will seek to align to international standards and reporting principles. “We hope to see companies and other industries around the world adopting a similar approach, developing their own comprehensive guidelines to accelerate the drive for net-zero and reposition for a sustainable future,” OGUK Emissions Improvement Manager Thibaut Cheret said. The Oil and Gas Authority’s (OGA) Technology Insights report showed in early July that net-zero and data and digital are increasingly key areas of focus for innovation in the oil and gas industry, alongside the core technologies for exploration, development, and asset operations.
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