David Johnson, Managing Director of Tudor International Freight, has said the decision to leave the EU could lead initially to a period of political instability and could cause concern for oil and gas businesses.
He said: “Whatever new system results, however, administration, time or cost increases for oil and gas sector companies trading with EU-based organisations are certain.”
Mr Johnson explained the Brexit vote had made possible three alternative scenarios:
- A Norwegian-style free trade agreement with the union.
- A series of bilateral trade treaties with it on the Swiss model.
- The UK and EU nations charging each other the import duties they apply to other countries in the World Trade Organisation with which they lack free trade agreements.
He added: “A high proportion of the oil and gas sector’s exports currently go to EU countries and many jobs in the industry depend on trading with other organisations in the Single Market. Given these facts and that, after a long period of uncertainty, trading with the EU is now sure to become less easy, speedy or cheap, we quite understand why many oil and gas sector businesses will have concerns about their futures today.”
Edited from press release by Angharad Lock
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/24062016/uk-referendum-result-cause-for-concern-for-oil-and-gas-investment-2694/