A more favourable tax regime will be essential to encourage investment in the UK Continental Shelf, according to industry analyst Subsea IQ.

In its latest field development update, the group claims that while the exploration outlook in the region has improved, investment will be stunted while high taxes are in place.

According to research by Oil and Gas UK, the UK Continental Shelf may contain up to 25 billion barrels of untapped oil and gas, while technological innovation may yield an additional 11 billion barrels from existing projects.

But in order for this potential to be realised, the levies imposed on oil and gas exploration will have to be cut dramatically, said Subsea IQ.

Oil and Gas UK has since 2007 been working with Opito - the Oil and Gas Academy to introduce minimum safety training standards throughout the UK industry, as well as supporting technical innovation programmes.

It anticipates that safety training will be completed across the entire offshore oil and gas sector by the end of this year.

Getenergy Exploration and Production news