Wednesday, January 14, 2015

Carlyle Commits £660m to UK's North Sea

The HeraldScotland reported:

Big tax break signaled for oil industry as taskforce established to help save jobs. 

The beleaguered oil and gas industry is set to receive a significant boost today with a £660m investment in the North Sea sector from the Carlyle Group, a US-based global asset management company. 

The announcement is being made to coincide with David Cameron's last visit to Washington before the General Election and is the largest deal among a number to be announced, totaling more than £1.1bn, which will create 1700 new jobs across the UK. It comes as Alistair Carmichael, the Scottish Secretary, signaled the industry would get a major tax break in the Budget. 

This is pure Carlyle which loves to buy stressed assets at a deep discount, garner major tax breaks and do deals with crony politicians, like David Cameron and Barack Obama.  In reference to the major tax breaks Carmichael stated:

"These are extraordinary times. Government will have to come forward with measures that are suitable for the times."

These are PEU times and the deals government gives them are truly extraordinary.  Ask Sheila Bair what the FDIC gave Carlyle et al to save BankUnited.