UK investment allowance gets to work

Greater enthusiasm is emerging not just for activity but also for projects promising near-term spend

The identity of the buyer of the Victory gas discovery on the UK continental shelf (UKCS), on which terms have now been agreed, remains confidential. But UK independent Reabold Resources, owner of almost half of the Corallian Energy vehicle being used to sell Victory, has been able to reveal that it is a “major” oil and gas firm. And that reflects measured optimism that the investment allowance element of the UK government’s controversial Energy Profits Levy (EPL) is not only encouraging activity, but also increasing M&A appetite for pre-production assets that can allow investment. Corallian and the Victory licence will have a £32mn ($34mn) price tag, of which Reabold will see a net £12.