UK Tax Increase Hurts South Morecambe Profitability

Centrica will operate its South Morecambe gas field intermittently in the future as the increase in UK Supplementary Corporation Tax means the field's profitability may be marginal.

The tax increase means the South Morecambe field will be taxed at 81 percent. Decisions on when to run the field are made on a commercial basis, taking into account market factors, operating costs and earnings, a company spokesperson said.

"We will continue to monitor the market closely to make production decisions and if it makes more economic sense to buy gas for our customers in the wholesale market we would limit South field production."

Planned maintenance at the field has been completed and the field has been operationally available since May 28, a company spokesperson said.

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