The head of TotalEnergies’ North Sea business says the supermajor will slash investment by a quarter next year in light of the UK Government’s windfall tax, and expressed concern over the lack of a price floor built into the policy.
Energy Profits Levy (EPL)
Government and industry gathered in London on Wednesday at a meeting hosted by the sector’s regulator, as fiscal and political concerns topped the agenda.
Repsol Sinopec Resources UK (RSRUK) says it expects to spend nearly $3.6 billion on decommissioning over the next thirty years, according to company filings.
Harbour Energy (LON: HBR), the North Sea’s largest producer, looks set to be relegated from the list of leading publicly-quoted UK companies after a windfall tax body blow.
Norway’s Equinor said it is “still working hard” on sanctioning the Rosebank oilfield in the first quarter of next year – despite the latest windfall tax “uncertainty”.
UK Chancellor Jeremy Hunt is considering a new 40% windfall tax on the “excess returns” of electricity generators as part of his sprawling package of tax rises and spending cuts this week, according to a person familiar with the proposal.
There was once a time when grandiose economic statements were something of a collector’s item.
A North Sea firm has asked Jeremy Hunt to provide a “small fields allowance” in the windfall tax, reinstating legislation from George Osborne’s era in the Treasury.
The looming threat of changes to the UK windfall tax is the “biggest question” hanging over development of the huge Cambo and Rosebank oilfields.
Rishi Sunak has come under fire over a windfall tax on oil and gas firms enacted during his time as Chancellor, as Shell confirms it made no additional payments thanks to generous investment rebates.
Questioned on the possibility of further windfall taxes on fossil fuel profits, business secretary Grant Shapps hinted the measures could form part of the upcoming Autumn Statement.
Trade body Offshore Energies UK has written to Chancellor Jeremy Hunt requesting an “urgent meeting” as it warns revisions to fiscal policy are scaring off UK energy investment.
The British government should raid the banks for tens of billions of pounds to fill a black hole in the public finances, according to former Bank of England Deputy Governor Charlie Bean.
Rishi Sunak's climate credentials were under scrutiny on Friday after the new Prime Minister decided to snub Cop27, amid speculation that he could move to expand the windfall tax on energy companies.
Rishi Sunak has been named leader of the Conservative Party following Liz Truss' resignation last week, and will take the reins at a turbulent time in British politics.
Wood Mackenzie researchers say the government’s windfall tax measures are likely to wipe around 20% off the value of North Sea operators on average, with the impact largely dependent on current tax and investment status.
With her place as the UK’s next prime minister secure, Liz Truss will soon face a tidal wave of energy policy and security decisions likely to test her campaign promises.
North Sea offshore operators and licensees have been paying an average of £22.1million in tax per day since the start of the year, even before the so-called windfall tax comes into force, new figures have shown.
UK business secretary Kwasi Kwarteng will meet with North Sea oil and gas producers today to discuss the government’s windfall tax.
The UK’s main lobby group for the oil and gas industry urged ministers to work with the sector to minimize the the impact of a new windfall tax on profits.
North Sea industry leaders are seeking an urgent meeting with the new Chancellor, Nadhim Zahawi, on the windfall tax.
Nadhim Zahawi inherits a raft of cost-of-living problems following the resignation of Rishi Sunak as chancellor.
Last month, Chancellor Rishi Sunak flew into the Granite City - home of the UK’s offshore energy industry. He was there to listen directly to the concerns put forward by industry leaders on the Government’s proposed energy profits levy.
North Sea operator Serica Energy (LON: SQZ) has said it is “increasingly” exploring M&A opportunities outside of the UK.
Baron Oil (AIM: BOIL) has said economics on its Dunrobin project in the North Sea have been “transformed” with the surge in commodity prices and new UK Government policies.