UK North Sea Oil Regulator Raises Investment and Output Outlook

(Bloomberg) -- The UK’s North Sea oil and gas regulator raised its forecasts for investment and production in the coming years after 2024 figures were higher than expected.

The North Sea Transition Authority said capital expenditure totaled £5.95 billion ($7.7 billion) last year, more than 50% above an October projection, according to estimates published on its website. While investments are expected to be lower this year at £4.8 billion, they’re still significantly above a previous forecast published after the Labour government raised taxes on the oil and gas industry. 

Oil and gas investments in the UK’s aging basin are a widely watched indicator as the government has started consultations about the future of the North Sea. Companies have been complaining about high tax burdens and policy uncertainty, with some looking for projects elsewhere.

The revision was based on updated data from the industry, NSTA said in response to Bloomberg questions, without elaborating. 

Last year’s surge of upstream investment “has come, in large part, as a result of some significant oil and gas developments moving forward over the last couple of years,” the industry lobby group Offshore Energies UK said in its business outlook earlier on Tuesday.

The NSTA also slightly raised its estimates for Britain’s oil and gas output. Last year, UK producers pumped 1.09 million barrels of oil equivalent a day, 20,000 barrels more than forecast in October. In 2030, daily output is projected to almost halve to 0.62 million barrels of oil equivalent. 

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