Oil industry expert discusses mature fields' future

Oil industry expert Professor Alex Kemp has taken part in a podcast interview to discuss the future of mature fields operators.

Speaking to Oil and Gas IQ, Professor Kemp talked about the potential impact of the North Sea oil sector taxation announced in last month's Budget.

The levy is expected to reach some £2 million and - following its announcement in late March - was subject to criticism from industry figures, who feared the move would damage the sector.

Speaking about the tax, Professor Kemp voiced concerns that it will have a negative impact on return on investment and cash flow for mature field operators as the petroleum revenue tax rises to 81 per cent from 75 per cent.

"The question is, really, will the downward trend on the mature fields be rather faster than it was before the Budget. My fear is that this will happen," he commented.

Professor Kemp is also expected to speak in Scotland at the Mature Fields 2011 event, which will run from June 28th to 29th.