UK Government Approves £4 Billion Oil Field Investment

A £4bn investment in a major oil field off Shetland has been given the go-ahead.

The Kraken field, which is estimated to contain nearly 140m barrels of oil, is majority-owned by Aberdeen-based EnQuest.

The construction phase of the project is expected to support 20,000 jobs.

EnQuest also expects to take on an average of about 1,000 operational jobs in the UK for each year of Kraken’s 25-year life.

The development, which was approved by the Department of Energy and Climate Change, is the largest investment announced in the UK North Sea this year.

Kraken’s two heavy oil fields will receive tax allowances introduced by the UK government in a bid to stimulate investment in the sector.

Chancellor of the Exchequer George Osborne said: “This is a big investment that will create jobs and boost the British economic plan.

“It is also evidence that our efforts to create a competitive tax regime that gets the most oil and gas out of the North Sea are working.”

via BBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza