The rejection of the Jackdaw gas development for Climate Change reasons marks a significant milestone in the UK's regulatory risk environment. Given the exponential increase in gas prices ahead of its announcement, that a regulator should prioritise the importation of gas over domestic production is non-sensical. Consequently, we are lowering our outlook to Negative.
October 8, 2021
Europe - North West
Western Europe, islands - including the northern one-sixth of the island of Ireland - between the North Atlantic Ocean and the North Sea; northwest of France.
The fiscal regime that applies in the United Kingdom (UK) to the oil and gas industry consists of a combination of corporation tax, supplementary charge and petroleum revenue tax.
The UK formally withdrew from the EU’s political institutions on 31 January 2020, while remaining a de facto member of the EU’s economic and trading institutions during a transition period that ended on Assessment Date. The terms of the UK’s future relationship with the EU are still under negotiation, but it is widely expected that trade between the UK and the EU will face more friction following the UK’s exit from the single market. UK legal, regulatory, and accounting systems are transparent and consistent with international standards. The UK legal system provides a high level of protection. Private ownership is protected by law and monitored for competition-restricting behavior.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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