Equinor has reported $1.87 billion in pre-tax income for its UK operations, while it paid out a total of $6 million in tax within the county.
Of the $6m paid in UK taxes, Equinor dished out $4m in taxes related to its “extractive activities” for the year.
Equinor said $1.3m was paid in respect of Rosebank throughout 2022, following the project’s approval in September this year.
It is worth noting that the controversial Rosebank project has not started producing yet while Equinor’s Mariner is, and the firm paid $500,000 in taxes relating to that project during 2022.
The Norwegian firm states, in relation to its UK payments for the year in its tax contribution report, its “effective tax rate” was reduced by uplift for losses being carried forward, and an uplift on its capital expenditures.
In the UK, the current headline tax rate for oil and gas operations is set to 75% following the implementation of the Energy profits levy (EPL), or windfall tax, which kicked in during May 2022 and is due to end in March 2028. That’s combined with other measures including the supplementary charge and ring-fenced corporation tax.
The windfall tax has a clause that was introduced earlier this year that will see it fall away if oil and gas prices fall to “historically normal levels”.
Globally the firm paid $44.64 billion in income tax globally with $43.03bn of which being paid in Norway.
Of the countries Equinor paid tax in, the UK placed third lowest in the amount given with the firm paying one million USD each in Tunisia and Turkey.
Equinor paid seven million in Russia, just 1 million more than the UK despite sanctions being put in place against the country following the illegal invasion of Ukraine.
On the other end of the spectrum, Equinor paid $43 billion in its native Norway, making up a majority of its total $44.6 billion paid internationally.