Oil & Gas R&D Tax Credits

The oil and gas industry has a central role in the economy, with around 72% of the UK’s oil and 43% of its natural gas consumption coming from domestic production.

Innovation within the sector is key, especially due to increased pressure to adopt more environmentally sustainable practices, and more competition from renewable energy sources.

Oil & gas R&D could include the creation or modification of refining or drilling methods, offshore infrastructure, plant improvements, engineering solutions, technology advancements etc.

R&D tax credits can offer oil & gas organisations an additional tax deduction of up to 130% (SME example) off all qualifying innovation spend (changing to 86% on all expenditure on or after the 1^st April 2023 (View R&D tax credit changes)).

Oil & Gas R&D Tax Credit Examples

Qualifying oil & gas R&D projects must attempt to “resolve a scientific or technological uncertainty”. This is when a qualified professional cannot see a solution to a problem without exploratory testing and development.

The testing must attempt to fill a knowledge gap within the industry, and change or create a new product, process or service.

Oil & Gas R&D Product Improvements

Qualifying R&D product projects include the testing and development of new or modified:

Design, construction and installation of offshore steel jackets, piles, buoyancy modules, platforms and helidecks
Design and engineering of generator, compressor and process modules, and processing skids
Engineering solutions for wastewater treatment
Environmental protection and testing measures
Offshore electrical or power infrastructure
Remotely Operated Vehicles (ROV) and their operational software for subsea work.
Plug and abandonment (P&A) methods and technologies to plug wellbores
Drilling, hydraulic fracturing and extraction equipment
Plant improvements because of a temporary plant shut-down issue or a planned Turnaround (TAR) period

Oil & Gas R&D Process Improvements

Qualifying R&D product projects include the testing and development of new or modified:

3D seismic imaging research work in oil exploration
Measurement-while-drilling (MWD) technology for more efficient drilling
Pressure measurement solutions
Oil and gas refining methods
Fuel combustion testing
Control systems
Bespoke components and software

Contact Amplifi, R&D Tax Credit Specialists

Contact the Amplifi Solutions’ team for advice with your innovation and R&D tax credits

Oil & Gas R&D Tax Credits

Oil & Gas R&D Tax Credit Examples

Oil & Gas R&D Product Improvements

Oil & Gas R&D Process Improvements

Contact Amplifi, R&D Tax Credit Specialists

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