Does the ownership of North Sea fields mean production won’t benefit the UK?

Oil and gas produced from the North Sea is developed under UK licences, regulated by the UK, taxed by the UK, and supported by UK workers, ports, engineering companies and supply chains, regardless of the operator.

Developing a field requires billions of pounds of investment in drilling, subsea equipment, fabrication, engineering, logistics, maintenance and offshore services. Much of this work is carried out by UK businesses, supporting skilled employment and industrial capability across the country.

Profits from UK oil and gas production are subject to UK tax rules, regardless of the nationality of the parent company. Since production started in 1967, the North Sea oil and gas sector has generated more than £350 billion in production tax revenue alone.

Moreover, international operators have always established long-term business operations to support their offshore operations. Companies maintain offices, engineering centres and operational bases across the UK, employing engineers, geologists, project managers, finance professionals, IT specialists, legal teams and support staff, while generating demand for local contractors, accommodation, transport, hospitality and other services. Today, the industry contributes more than £20 billion a year to the UK economy according to Offshore Energies UK.

Individual projects illustrate these wider benefits. Equinor, Norway’s state-owned energy company, says 78% of Rosebank's £8.1 billion lifetime investment is expected to be spent with UK-based businesses - more than £6 billion - while supporting around 1,600 jobs during construction and approximately 450 UK-based jobs over the life of the field. Those benefits accrue regardless of the nationality of the parent company.