KPMG UK comments on the North Sea Transition Deal
KPMG UK's Head of Oil & Gas Claire Angell comments on the Government's energy transition announcement
KPMG UK's Head of Oil & Gas Claire Angell comments on the Government's energy transition a
Commenting on the announcement of the UK Government’s North Sea Transition Deal, KPMG UK’s Head of Oil & Gas, Claire Angell, said:
“The North Sea Transition Deal announced today highlights the Government’s commitment to UK domestic oil and gas, recognising the important role it has in the energy mix. It’s reassuring to see that this announcement goes beyond the expected commitment to the decarbonisation of existing oil and gas production and looks to the future or the energy mix and seeks to lay the foundations for future industries such as offshore wind and hydrogen. But precise details are yet to be announced on financial incentives that the Government will provide to reduce carbon emissions, and it is unclear what part of the £16 billion cited as “joint investment” will be contributed by the Treasury. Some had called for a ban on future exploration licences, in line with recent announcements in Denmark, but the announcements today set out enhanced regulatory scrutiny around future awards to ensure that projects are aligned with the net zero strategy. Today’s announcement is a step in the right direction but given the significant costs of projects such as electrification, what the industry really needs to enable it to start moving is full clarity on exactly what level of funding will be available.”
Follow us on twitter: @kpmguk
KPMG Press Office: +44 (0)207 694 8773
KPMG LLP, a UK limited liability partnership, operates from 21 offices across the UK with approximately 16,000 partners and staff. The UK firm recorded a revenue of £2.3 billion in the year ended 30 September 2020.
KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 147 countries and territories and has more than 219,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.