Cambo oil field owner exposes no need to pay tax on questionable project ‘for several years’ due to ‘attractive’ UK guidelines

Cambo oil field owner exposes no need to pay tax on questionable project ‘for several years’ due to ‘attractive’ UK guidelines

The main owner of the questionable Cambo oil field has highlighted in a business presentation that it is not due to pay tax for “for many years” on its tasks in the North Sea due to the UK’s “attractive” tax routine.

UK-based Siccar Point Energy co-owns Cambo with Shell. The field is thought to include approximately 800 million barrels of oil.

The government is because of approve a last authorization to start drilling there, triggering a national project from environmentalists to stop the brand-new extraction of nonrenewable fuel sources, as suggested by both the UN and the International Energy Company.

A statue of Prime Minister Boris Johnson splattered with oil as campaigners from Greenpeace demonstrate Downing Street, London, against the Cambo oil field off the west coast of Shetland. Picture date: Monday October 11, 2021.

Image:
A statue of Prime Minister Boris Johnson splashed with oil as campaigners show against the Cambo oil field

In the business presentation, which is dated February 2021 and is openly offered, Siccar Point says that because of the UK’s “simplified and attractive tax regime … Siccar Point … is not anticipated to pay taxes for several years”.

As Prime Minister Boris Johnson prepares to go back to COP26 to urge countries to be more ambitious, and as nations like Costa Rica and Denmark introduce the Beyond Oil and Gas Alliance, the Siccar Point presentation highlights how the UK is considered as a beneficial location for fossil fuel corporations to do company.

Energy Research business Rystad Energy just recently named the UK as the nation that offers oil and gas business the “finest profit conditions” on the planet “to establish big offshore fields”.

A representative for Siccar Point Energy informed Sky News: “Siccar Point Energy is a UK business, with assets entirely based in the UK.

” It undergoes full UK tax, and taxes will be paid when they fall due. Cambo is a multi-billion pound financial investment that will decrease the UK’s dependence on energy imports throughout the handled shift to net zero and produce thousands of UK tasks.

” The project will not produce revenues and revenues for a number of years, however when it does these earnings will be totally within the scope of UK tax.”

Siccar Point is not alone.

Sky News has actually already reported that a few of the world’s biggest oil business are presently paying negative tax on their fossil fuel extraction and production operations in the North Sea.

Authorities information published by the UK government-backed Extractive Industries Transparency Effort shows that in the tax year 2019-20, ExxonMobil got ₤117 m in overall from HMRC, Shell got ₤110 m, and BP received ₤39 m.

In reality, a third of all considerable energy business operating in the North Sea paid unfavorable tax in 2015.

This is possible in big part since of a UK tax policy that was brought in just a few months after the Paris environment accord was concurred in 2015, permitting oil and gas business to claim back public money in order to aid with decommissioning rigs and facilities as the UK advances towards its net-zero carbon emissions targets.

It is also possible due to the fact that business are permitted to obtain the tax history – and associated benefits and write-offs – of oil and gas fields when they buy them, and are provided considerable capital investment allowances on new projects.

Campaign groups state current tax policies effectively total up to the British public subsidising fossil fuel extraction, even as they are being urged to make greener options in their own lives.

Ecological attorney and director of campaign group Uplift, Tessa Khan, told Sky News: “The UK federal government has set the guidelines in the North Sea so that it’s the most successful nation worldwide for companies aiming to develop huge, overseas oil and gas projects, like Cambo.

” And it means, as a nation, we are subsidising to the tune of billions the very business that are driving the climate crisis.

” There can be no brand-new oil and gas advancements if we desire a liveable climate. How can Boris Johnson stand in front of world leaders and need that they change while he prevaricates over Cambo and the 30 other North Sea oil and gas projects waiting for approval?

” His government should step up and sign up with those countries calling time on nonrenewable fuel source production.”

The UK government has insisted it is not enabled to intervene in the approving of licenses and authorizations, which is managed by a regulative body called the Oil and Gas Authority.

Spokespeople mention suggestions from the independent Environment Change Committee, which acknowledges that fossil fuels will continue to become part of the UK’s energy mix in the coming years, and the reality that all prepared new extraction in the North Sea has actually been factored in to the net-zero carbon emissions method.

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