Baker Hughes Rig Count: International -54 to 1,058.,U.S. -2 to 543 Canada -5 to 130

19 Apr Baker Hughes Rig Count: International -54 to 1,058.,U.S. -2 to 543 Canada -5 to 130

U.S. Rig Count is down 2 from last week to 543 with oil rigs down 1 to 410, gas rigs down 2 to 125 and miscellaneous rigs up 1 to 8.
Canada Rig Count is down 5 from last week to 130 with oil rigs down 6 to 77, gas rigs up 1 to 53 and miscellaneous rigs unchanged at 0.
International Rig Count is down 54 from last month to 1,058 with land rigs down 44 to 829, offshore down 10 to 229.

In a unanimous decision, the Supreme Court has allowed HMRC’s appeal and significantly narrowed the circumstances in which expenditure on pre‑construction surveys and studies qualifies for plant and machinery capital allowances under section 11(4) of the Capital Allowances Act 2001 (“CAA 2001”).

This decision is of particular significance for: (i) developers of large-scale energy and infrastructure projects (as the net of tax cost of developing such projects has increased); and (ii) buyers and sellers in M&A transactions involving energy and infrastructure projects (where the allocation and treatment of such pre-construction costs may affect the value of capital allowance pools and, consequently, the tax attributes assumed to be available for valuation purposes).

The decision also highlights the considerable cost pressures that developers of major offshore projects face prior to a project’s final investment decision, including the significant expenditure required on essential preparatory surveys and studies such as subsea surveys before planning permission is granted. As we discuss further below, these cost pressures, compounded by the inability to claim capital allowances on such expenditure, raise broader questions about project economics and the adequacy of existing support mechanisms during the development phase, including whether alternative models such as the Regulated Asset Base model should be explored.

In this article we provide an overview of the decision, and the practical implications for industry participants arising from this decision.. Read More

Two Iranian gunboats reportedly opened fire on two Indian-flagged ships transiting the Strait of Hormuz, according to a statement by India’s ​Ministry of External Affairs. The United Kingdom Maritime Trade Operations Centre reported the tanker and its crew were safe without revealing its identity or its destination. Read More