Oil group says Budget puts exploration at risk: Amerada Hess hits out at Chancellor's 'driller killer' plans
Wednesday 24 March 1993
The company, one of the most active in British waters, said that the Chancellor's proposal to abolish tax relief on exploration and appraisal costs could result in a two-thirds fall in drilling work and cost thousands of jobs.
Sam Laidlaw, managing director of Amerada Hess, said that the company was reviewing its own operations as a result of the changes and threatened to withdraw its applications to develop new fields if they become uneconomic.
He said that there was widespread anger in the industry about the tax changes, which would make Britain significantly less attractive for the oil industry than many other territories, including Norway and Australia.
The company has already decided to more than halve its drilling programme this year to 10 wells and estimates that the industry's total drilling activity could fall from 130 last year to about 80 this year.
Describing the Chancellor's plans as 'driller killer', he said: 'Those companies that will be most severely affected will be those who have demonstrated the greatest commitment to the future of the UK continental shelf through active participation in licensing rounds.'
The company says that the withdrawal of the relief - whereby drilling costs can be offest against profits of producing fields - would quadruple the costs of developing small fields.
- 1 Is this bridge haunted by the ghost of nu rave?
- 2 The West has it totally wrong on Lee Kuan Yew
- 3 The day I starred in Only Fools and Horses
- 4 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
- 5 Zayn Malik quits One Direction: Hundreds of workers request compassionate leave following band member's exit
Is this bridge haunted by the ghost of nu rave?
Saudi Arabia says it won't rule out building nuclear weapons
Germanwings plane crash: Andreas Lubitz 'had eyesight problems' and woke from nightmares 'screaming we’re going down'
The battle for the Middle East's future begins in Yemen as Saudi Arabia jumps into the abyss
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
Revealed: Putin's army of pro-Kremlin bloggers
The West has it totally wrong on Lee Kuan Yew
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...