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.”
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