{"id":1488033,"date":"2024-09-05T09:00:00","date_gmt":"2024-09-05T13:00:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1488033"},"modified":"2024-09-05T09:00:00","modified_gmt":"2024-09-05T13:00:00","slug":"top-uk-north-sea-oil-firm-sees-rising-windfall-tax-hitting-investments","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/top-uk-north-sea-oil-firm-sees-rising-windfall-tax-hitting-investments\/1488033\/","title":{"rendered":"Top UK North Sea Oil Firm Sees Rising Windfall Tax Hitting Investments"},"content":{"rendered":"

Top UK North Sea Oil Firm Sees Rising Windfall Tax Hitting Investments<\/span><\/p>\n

\n

Authored by Tsvetana Paraskova via OilPrice.com,<\/em><\/a><\/p>\n

The UK government\u2019s plan to further raise the windfall tax on North Sea oil and gas producers will drive investments away from the region while Britain still needs oil and gas for the foreseeable future, <\/strong>the chief executive of Harbour Energy, the largest UKCS producer, told the\u00a0Financial Times<\/a>.<\/p>\n

<\/a><\/p>\n

The Labour Party, which came to power in the UK after a landslide victory in the July general election,\u00a0said<\/a>\u00a0in July\u00a0that it intends to raise the rate of the Energy Profits Levy (EPL) to 38% from 1 November 2024, from 35% now<\/strong>, bringing the headline rate of tax on upstream oil and gas activities to 78%, up from 75% currently. The levy will be further extended by a year to 2030.<\/p>\n

Harbour Energy\u2019s CEO Linda Cook has criticized the levy ever since it was first introduced by the previous UK government in 2022.<\/p>\n

Now Cook told FT that a rise in the windfall tax would lift the barrier to attract investment in the UK even higher.<\/p>\n

\u201cThe fiscal regime in a lot of the other countries \u2014 in all of the other countries \u2014 in which we will have a presence will be more attractive\u201d than the UK North Sea, <\/strong><\/em>she added.<\/p>\n

Earlier this week, UK offshore industry group OEUK\u00a0warned<\/a>\u00a0that not only viable capital investment would be reduced from $18.5 billion (\u00a314.1 billion) to just $3 billion (\u00a32.3 billion) in the period 2025 to 2029, but the tax hike would also lead to $16 billion (\u00a312 billion) lower tax receipts for the country compared to the current tax regime.<\/p>\n

Last week, Equinor, the operator of one of the major new field developments in recent years, Rosebank, said it\u00a0awaits clarity<\/a>\u00a0on the UK tax regime by the Labour government before strategizing and committing to investments in the UK North Sea.<\/p>\n

As a result of the planned hike in the windfall tax, UK North Sea producers have already\u00a0warned<\/a>\u00a0they are considering moving to more fiscally stable jurisdictions such as Norway.<\/strong><\/p>\n

Neo Energy said this week it was\u00a0slowing down investment<\/a>\u00a0in light of \u201cfiscal and regulatory uncertainty\u201d.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nThu, 09\/05\/2024 – 05:00<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/energy\/top-uk-north-sea-oil-firm-sees-rising-windfall-tax-hitting-investments<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Top UK North Sea Oil Firm Sees Rising Windfall Tax Hitting Investments Authored by Tsvetana Paraskova via OilPrice.com, The UK government\u2019s plan to further raise…<\/p>\n","protected":false},"author":0,"featured_media":1488034,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1488033","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1488033","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1488033"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1488033\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1488034"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1488033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1488033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1488033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}