“The restructuring of the tax regime announced by the Government in the Budget and the establishment of the Oil and Gas Authority can encourage the much-needed future investment. However, unless the underlying cost and efficiency challenge is first tackled and overcome, the productive future of the UK North Sea will be severely constrained and there will be a very much smaller industry to tax, regulate and invest in.
All companies are now working hard to address the cost base and to improve the efficiency of their operations. This is very important work because we need to see a 40 per cent improvement in unit operating costs if we are to secure jobs and investment for the medium and longer-term.”
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