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.
Ben van Beurden has claimed high oil and gas prices aren’t the sole reason for Shell (LON: SHEL) posting record for profits for the second quarter in a row.
BP’s UK head said the government’s energy profits levy was unlikely to affect its North Sea investment plans, following confirmation that the measures would cease in December 2025.
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.
The UK plans to announce in the coming days whether it will extend a windfall tax to electricity generators -- a difficult task as the government tries to help consumers struggling with inflation while also supporting renewable energy.
It is expected that the legislation introducing the new energy profits levy – better known as the windfall tax – will pass through parliament later this month, before taking effect from when it was originally announced 26 May.
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.
New research has warned that high oil prices, coupled with the UK Government’s windfall tax, could “pose a threat” to North Sea decommissioning targets.
Leading energy lawyers say clients have enquired whether the government’s windfall tax would withstand legal challenges, as the consultation process draws to a close.
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.
Oil industry leaders have said the “ball is in the Chancellor’s court” to now address their concerns ahead of key windfall tax legislation being published next month.