Oil & Gas UK Annual Review 2013

ANNUAL REVIEW 2013

Key Achievements in 2013

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• Decommissioning Relief Deed

- Safety Performance Benchmarking for installation duty holders gives an overview of the UK industry’s safety performance using incident data from the Health and Safety Executive (HSE) and man-hour data from the Vantage Personnel on Board (POB) tracking system - An inventory of all UKCS platform wells describing their flowing status - The Environmental and Emissions Monitoring System (EEMS), which has seen improvements in data submissions - The Environmental Legislation website, used as a register of legislation for Environmental Management Systems (EMS) compliance purposes - Validation of the European Seabirds at Sea (EASA) data, used for Oil Pollution Emergency Plans (OPEPs) and environmental statements - Expenditure and activity forecasting, providing consistent primary datasets from which Oil & Gas UK draws for various pieces of work, including the annual Activity Survey Report and the Decommissioning Market Insight

Securing certainty on tax relief for decommissioning will unlock billions of security currently tied up in decommissioning security trusts which can now be accessed and reinvested into the UKCS, dramatically increasing the attractiveness of UK projects. This project is perceived to be the largest in financial terms in which Oil & Gas UK has been involved in recent years. Over 20 projects to date have successfully secured a BFA, incentivising capital projects worth over £3.5 billion and delivering over 600 million boe of incremental oil and gas production over time. The BFA is now seen as a key lynchpin for the UK oil and gas tax regime to maintain tax competitiveness. Oil & Gas UK has embarked on a major exercise to map the UK offshore oil and gas supply chain to shed greater light on the sector’s segmentation and competitiveness. This will help the government target more effective support for export growth, and to highlight business opportunities for investors. Oil & Gas UK gathers, manages and publishes a wide variety of data sets which allow efficient and cost-effective mechanisms for companies to submit statutory and non-statutory returns, monitor overall performance and describe accurately the industry’s impact on the economic or physical environments. This includes:

• Brownfield Allowance (BFA)

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• Supply Chain Mapping

- Production Efficiency Data to provide a benchmark for oil and gas assets over time

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• Consultation and Inquiry Responses

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• Data Provision and Management

Oil & Gas UK submitted written responses to almost 30 formal and informal government, parliamentary and regulator consultations and inquiries on behalf of its members in 2013. It appeared as an expert witness before members of the Environmental Audit and Business, Innovation and Skills select committees in Westminster.

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