Oil Firms Opt for Stability, Urge Scotland to Stay in UK

MarineLink.com
Thursday, March 06, 2014

Reuters - Royal Dutch Shell has become the second energy heavyweight to urge Scotland to stay in the United Kingdom as the campaign for Scottish independence battles mounting opposition from businesses.

Shell is a key player in the North Sea oil and gas fields off Scotland and its Chief Executive Ben van Beurden said a vote for independence on Sept. 18 would mean greater uncertainty for the energy industry.

Last month, the boss of BP warned Scottish independence could cause "uncertainties" for his company.

Other oil companies in the North Sea on Thursday stressed the importance of predictability for their operations, joining a growing number of financial services companies voicing concerns about the impact of independence but avoiding political comment.

Another of Scotland's largest companies Aggreko, a provider of temporary power generators which has its headquarters in Glasgow, joined the chorus on Thursday.

It said independence would likely add significantly to its administration costs as its UK operations would have to be split into two trading entities.

Opinion polls have the independence movement trailing with only about one third of voter support but the gap in the polls has narrowed this year as the debate gathers pace.

Van Beurden said he valued the continuity and stability that the UK offered, arguing for its continued inclusion of Scotland and membership of the European Union.

"We'd like to see Scotland remain part of the United Kingdom," Van Beurden told a company event in London on Wednesday evening as reported by the BBC.

"We're used to operating in uncertain political and economic environments. But, given a choice, we want to know as accurately as possible what investment conditions will look like 10 or 20 years from now."

Currency, Tax Concerns
Scotland's Energy Minister Fergus Ewing offered to meet Shell to discuss the future of the oil and gas industry if Scotland votes to end its 307-year tie with England.

"An independent Scotland with full control of its economy and huge resources will offer an attractive and stable environment for businesses in the offshore and other sectors," Ewing said in a statement.

Norway's Statoil, also a major operator in the North Sea, said it stood by a statement made by industry organisation Oil & Gas UK, which said it was essential the independence debate did not create any instability.

That view was echoed by TAQA, a subsidiary of the Abu Dhabi National Energy Company.

"Predictability and long-term planning are what the industry requires of any government, particularly in the fiscal regime and the licensing and regulatory framework," said a spokeswoman.

Several financial services companies have raised concerns about the risks, with Barclays and state-backed Lloyds Banking Group joining the list this week.

Among their concerns, companies have highlighted uncertainty over what currency would be used in an independent Scotland, how tax and regulatory regimes might change, the cost of doing business and whether EU membership would be feasible.

Two airlines, however, British Airways and Ryanair , have said Scottish independence could be good for their businesses due to proposals to abolish air passenger tax.

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

BMT Partners with Aage Hempel

BMT SMART (BMT),  has announced  that Aage Hempel has become an accredited service partner.  This agreement will provide both organizations with the opportunity

Tanker Backlog Builds at Basra

Ships face up to a three week wait; bad weather in February delayed loading, created backlog. * April intake to be reduced to clear backlog By Keith Wallis SINGAPORE,

U.S. Port Delay Boost February Air Freight

Global air freight volumes rose 11.7 percent year-on-year in February, driven by the Chinese New Year, the International Air Transport Association said on Wednesday.

Energy

Blaze hits Mexico Oil Platform, 300 Workers Evacuated

Mexican state-run oil company Pemex said on Wednesday that it was fighting a fire on oil platform in Campeche Bay on the Gulf of Mexico, home to the country's biggest oil field,

Donjon-SMIT Relocating to Houston

Alexandria, VA- Donjon-SMIT, the unique provider of Oil Pollution Act of 1990 (OPA 90) Salvage and Marine Firefighting (SMFF) services established by Donjon Marine Co.

Tanker Backlog Builds at Basra

Ships face up to a three week wait; bad weather in February delayed loading, created backlog. * April intake to be reduced to clear backlog By Keith Wallis SINGAPORE,

News

Baltic Sea Freight Index Down on Lower Rates

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, fell on Wednesday, pulled down by a fall in rates across all vessel segments.

Blaze hits Mexico Oil Platform, 300 Workers Evacuated

Mexican state-run oil company Pemex said on Wednesday that it was fighting a fire on oil platform in Campeche Bay on the Gulf of Mexico, home to the country's biggest oil field,

Donjon-SMIT Relocating to Houston

Alexandria, VA- Donjon-SMIT, the unique provider of Oil Pollution Act of 1990 (OPA 90) Salvage and Marine Firefighting (SMFF) services established by Donjon Marine Co.

Government Update

S.Korea to Pay $380,000 to Ferry Victims Families

The South Korean government said on Wednesday it would pay about 420 million won ($380,000) as compensation for each of the 250 students who died or remain missing from last year's ferry disaster,

Largest Vessel to Call ICTSI, Rijeka

Adriatic Gate Container Terminal (AGCT), International Container Terminal Services, Inc.’s (ICTSI) container handling facility in the Port of Rijeka, Croatia, recently

Focus on Environment at Suny Maritime

The State University of New York Maritime College’s 140th Anniversary Speaker Series presented a panel discussion on March 26 in the College’s Maritime Academic Center.

Offshore Energy

SeaZip Takes Delivery of Damen Crew Suppliers

On 28 March, SeaZip Offshore Service named two new Damen Fast Crew Suppliers (FCS) 2610 at Damen Shipyards Gorinchem.   The two vessels, named SeaZip 3 and SeaZip 4,

U.S. DoI Upholds 2008 Shell Arctic Lease

The U.S. Interior Department on Tuesday upheld a 2008 lease sale in the Chukchi Sea off Alaska, moving Royal Dutch Shell a step closer to returning to oil and gas

Japan, U.S. Look to Expand Naval Cooperation

Japanese Prime Minister Shinzo Abe's push to allow Tokyo to come to the aid of an ally under attack will pave the way for closer cooperation between U.S. and Japanese forces across Asia, a top U.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pipelines Port Authority Ship Repair Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2046 sec (5 req/sec)