Oil and gas operators may be sitting on new investment decisions until the future of the North Sea becomes clearer, according to the latest report from business advisory firm Deloitte. The report, which details drilling, licensing and deal activity across North West Europe over the third quarter of 2014, was compiled by Deloitteâs Petroleum Services Group (PSG) and found that four deals were announced offshore UK. This is slightly down on the five transactions reported in Q2 2014 and substantially lower than the 14 registered during Q3 2013.
Derek Henderson, senior partner in Deloitteâs Aberdeen office, said the drop in deals may be down to North Sea operators continuing to wait for further clarity about the future of the UK Continental Shelf (UKCS). In particular, firms are waiting for more detail about the implementation of the Wood Review, including formation of the Oil & Gas Authority, and changes to the North Seaâs fiscal regime. These measures are due to be detailed in Chancellor George Osborneâs Autumn Statement on 3 December.
Henderson said: âAll eyes will be on the Chancellorâs Autumn Statement, where industry will be looking for measures which support the challenges of operating in this mature basin.â?
