The UK’s oil and natural gas companies, which will get an exemption from the government’s £10bn cap on corporate gifts, can sell shares for up to £200 billion.
The announcement means that companies can raise more than £1bn a year, potentially a windfall for UK taxpayers.
The Government has announced a new incentive for oil and petrochemical companies, to sell their shareholdings to the public for as little as £100.
The money will be used to improve the sector’s ability to sell its reserves to overseas investors.
The Government said that in 2018, the sector will be worth £9.4bn, or £1.7 trillion.
It added that a total of £2.5bn will be raised through this incentive in 2019-20.
The incentive will be introduced in 2019, but is only available to oil and oil and mining companies with a minimum of 5 per cent of their company’s total assets held in UK shares.
The UK’s Government has said that a minimum shareholding of 5 percent in UK stocks is required to qualify for the £10 billion cap on donations, which was introduced in January 2018.
It is expected that, once the Government’s plan is rolled out, up to 50 per cent or more of the companies’ stockholders will be able to contribute.
Oil and gas executives are also expected to be able buy up to 5 percent of their companies’ shares.
An additional £1 billion will also be allocated to oil companies, with the remaining £2 billion earmarked for energy efficiency and green technologies.
In 2017, the oil and agribusiness sector generated £1,764bn of UK economic activity, making it the second largest sector after construction.