THE UKCS TAX REGIME: UNENDING WINDFALL DEBATE

摘要

The mature status of the United Kingdom Continental Shelf (UKCS) as an oil and gas province goes with some consequent imputable attributes. Oil and gas operation in the province has been going on for about 40 years.1 It has developed an extensive system of oil exploration and development. There is an established fiscal regime2 and system of licensing for hydrocarbon extraction. Above all oil production appears to be on the decline, the large deposit fields being on the brink of exhaustion. Fields that now seem to be available for development are smaller and some are also located in areas of less easy geological accessibility.3 The UK Government is faced with balancing its aims of securing fair revenue through effective fiscal policies and that of ensuring returns for companies who are investors operating in the UKCS. It deploys a regime similar to a cash flow tax in its attempts to achieve this. This article examines the extent to which efforts of the UK Government have achieved this double, albeit, conflicting objective.