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Article titleThe UK government published Wednesday a consultation on a new "cluster area allowance" to encourage investment in ultra-high pressure, high temperature oil and gas fields. The allowance would reduce the tax on a portion of a company's profits from 62 percent to 30 percent. In a statement, HM Treasury said that the allowance was designed to respond to the fact that exploration and production "is becoming harder and more expensive", while there is still up to 21 billion barrels of oil equivalent to be recovered from the North Sea. The allowance builds upon the Wood Review recommendations for maximizing economic production of oil and gas. It is intended not only to support investment in technically-challenging development projects, but also to encourage exploration in the surrounding areas.

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