ECONOMIC REPORT 2013
72
Figure 48: Field Allowances Available for the UKCS
Notes.
1. If a field qualifies for more than one field allowance then it can only claim the more valuable one, with the
exception of fields that subsequently qualify for a Brown Field Allowance, which is available in addition to any of
the other categories of field allowance.
2. The conversion of oil from tonnes into barrels varies depending on the density of the crude from each reservoir.
For illustrative purposes only, a light sweet crude is around 0.132 tonnes. For gas the conversion is set at 1,100
cubic metres to equal one tonne.
b) Field Allowances
Name
Pre-Tax Value Qualification Criteria
(as per Field Development Plan consent)
Effective Date
Small Fields
Up to
£75 million
Central case recoverable reserves of up to
3.5 million tonnes (circa 25 million boe)
March 2009
Ultra High Pressure/
High Temperature
(HPHT)
Up to
£800 million
Reservoir conditions exceeding pressures
of 862 bar and temperature of 166 degrees
Celsius
March 2009
Ultra Heavy Oil
£800 million
Oil at API gravity below 18 degrees and
viscosity exceeding 50 centipoise at reservoir
temperature and pressure
March 2009
Deep Water Gas
Up to
£800 million
• The field is in water depths exceeding
300 metres
• More than 75 per cent of the reserves
comprise gas
• Gas is to be transported for more than
60 kilometres along a new pipeline to
relevant infrastructure
January 2010
Small Fields [amended] Up to
£150 million
Central case recoverable reserves of up to
seven million tonnes (circa 50 million boe)
March 2012
Large Deep Water Oil
Up to
£3,000 million
• Central case recoverable reserves of
between 25 million and 55 million
tonnes (circa 187.5 – 412.5 million boe)
• The field is in water depths exceeding
1,000 metres
March 2012
Large Shallow
Water Gas
Up to
£500 million
• Central case recoverable reserves of
between 10 and 25 billion cubic metres
• More than 95 per cent of the field’s
reserves comprise gas
• The field is in water depths less than
30 metres
July 2012
Brown Field Allowance Up to
£50/tonne,
up to a cap of
£250 million
(£500 million if
PRT paying) per
project
• Authorised project capital costs exceed
£60 per incremental tonne of oil and
gas produced
• Project has been granted consent by
the Department of Energy and Climate
Change after 7 September 2012 by way
of Field Development Plan Addendum
(see main text for further details)
September 2012
