North Sea taxation warning over exports

Increases in North Sea taxation could damage the UK’s prospects of exporting technology and expertise, the head of the industry’s cost-reduction initiative warned in Aberdeen last week. Francis Gugen, chairman of the Crine Network and managing director of Amerada Hess in the UK, said: `It would be tragic if higher taxes were to divert investment […]

Increases in North Sea taxation could damage the UK’s prospects of exporting technology and expertise, the head of the industry’s cost-reduction initiative warned in Aberdeen last week.

Francis Gugen, chairman of the Crine Network and managing director of Amerada Hess in the UK, said: `It would be tragic if higher taxes were to divert investment funds, depress the oil and gas industry and rob it of a golden chance for export-led growth and employment.’

He was responding to Chancellor Gordon Brown’s recently announced review of the tax regime `to ensure that an appropriate share of North Sea profits are being taxed’. Gugen said the UK was becoming the supplier of choice in Russia, Indonesia, Scandinavia and North Africa.