LONDON, March 30 (UPI) -- A proposed British increase in the tax rate for work on oil fields in the North Sea warrants a review of work in the region, a Norwegian energy company said.
Statoil had plans to start work in the Mariner and Bressay oil fields near Shetland within the next six years. Both fields are estimated to hold around 640 million barrels of oil.
A spokesman for the company was quoted by The Telegraph newspaper in London as saying the proposed tax increase for work in the region would have a significant impact on the bottom line.
"We have to pause and reflect to evaluate what impact this will have and consider how to proceed after this," the spokesman said. "This is a project about to be developed. With this tax increase, there is a substantial impact."
Oil companies are expected to call for a meeting to get relief for smaller oil fields that they say may be abandoned with resources still in place.
The proposed 12 percent tax increase would fund a decrease in fuel duties in the United Kingdom.
