The full potential of oil and gas reserves in the UK North Sea may remain untapped unless the government develops greater incentives for exploration and production, Christophe de Margerie, chief executive of Total, has declared.

Reuters reports that the UK government had expected the financial sector to take up the slack left by dwindling oil and gas production in North Sea fields, but that support framework has now disappeared.

Now, Mr de Margerie declared, the government must work quickly to introduce tax breaks and other incentives that will allow the offshore industry to exploit remaining reserves to the fullest degree.

"If we don't get certain allowances ... we might have to consider what we might do or not do," he declared.

Meanwhile, as extraction of oil and gas becomes more complex, it is likely that upstream firms will have to invest more heavily in training and technology, a cost that could inhibit operations further unless government support is offered.

Oil and Gas Directory: Training and Development