BG GROUP INVESTMENT
REUTRES. Oil and gas producer BG Group (BG.L) said new British tax breaks for ultra-high-pressure high-temperature (HPHT) projects in the North Sea could lead to 6 billion pounds ($9.9 billion) worth of investment.
The company said in a joint statement with Denmark's Maersk Oil on Friday that proposals outlined by finance minister George Osborne would support its Jackdaw gas discovery being developed which would make a significant contribution to UK gas supply.
"The gas produced from these new fields could provide 10 per cent of the UK's gas demand when operating at peak rate," said Andy Samuel, managing director of BG Group's European upstream business.
Jakob Thomasen, the CEO of Maersk Oil, a unit of A.P. Moeller-Maersk (MAERSKb.CO), had already welcomed Osborne's proposals on Thursday.
The two companies estimate the projects will create more than 700 new jobs and close to 8,000 additional positions along the supply chain, to be spread across Britain, with half of them likely to be based in Scotland.
Separately Samuel said an independent Scotland would face additional costs for decommissioning North Sea infrastructure if it were to separate from the United Kingdom after a referendum in September.
"An independent Scotland would have to invest around 3,800 pounds per head - over ten times more than when costs are spread across the UK - to match the 20 billion pounds the UK Government has committed towards decommissioning in the North Sea," he said.
Several business leaders have raised concerns in recent weeks about Scotland leaving the United Kingdom after more than three centuries of union with England, fearing uncertainties over currency, tax, regulation and membership of the European Union.
Scottish nationalists have dismissed such fears as scaremongering.
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REUTERS - Brent crude futures LCOc1 were down 72 cents at $61.49 per barrel at 1020 GMT, having fallen by 1.5 percent on Tuesday, its largest one-day drop in a month. U.S. West Texas Intermediate (WTI) crude CLc1 was at $55.12 per barrel, down 58 cents.
BLOOMBERG - Prices dropped during the session as the International Energy Agency said the recent recovery in oil prices, coupled with milder-than-normal winter weather, is slowing demand growth. The worsening outlook for consumption dampened some of the enthusiasm that OPEC and its allies will extend supply curbs.
Global energy needs rise more slowly than in the past but still expand by 30% between today and 2040. This is the equivalent of adding another China and India to today’s global demand.
Product exports have grown significantly over the past several years and are expected to continue to grow as Russian refineries add capacity to produce more high-quality products.