French oil giant TotalEnergies has said it will cut North Sea investment by 25% next year after the windfall tax on oil and gas firms in the UK was extended.The windfall tax - the Energy Profits Levy - was raised from 25% to 35% in last month's Autumn Statement and will now stay in place until March 2028.
TotalEnergies is one of the North Sea's biggest oil and gas producers and its decision to cut investment will affect plans to drill a new well at its Elgin gas field. "The energy industry operates in a cyclical market and is subject to volatile commodity prices. We believe that the government should remain open to reviewing the Energy Profits Levy if prices reduce before 2028."The windfall tax on oil and gas companies operating in the North Sea was introduced in May after oil prices increased sharply.
Oil and gas firms operating in the North Sea are already taxed differently to other firms. Taxes on their profits are higher - they pay 30% corporation tax on their profits and a supplementary 10% rate on top of that.Last week, Brindex, an organisation representing smaller independent oil exploration companies in the North Sea, wrote to the chancellor saying the windfall tax increase represented an "existential threat" to the industry.
"Without such a mechanism and to continue down the path of the current anticipated 75% rate, further investment in the UK has become unviable and so begins a rapid onset of the decline of the North Sea," Mr Allen said.
Energy security. Punitive taxation. The lessons on the 70s being ignored before our eyes.
How much profit have they been making from us.
Greed
Imagine people being able to afford heating? Posturing bs
either way is a win win. Either they cut investment, and pay more tax - we all collectively benefit. Or they increase investment - we collectively benefit. Thanks Total.
Cheerio, thanks for your visit and your tax free exploration culminating in vast profits.
Well done Jeremy_Hunt 👏🏼
Cut but not stopped!
That's what you get from a windfall Tax, investment Cut and the Jobs which go with it
These oil companies have been dodging tax by offsetting against decommissioning, why is this allowed? They should be taking care of decommissioning themselves due to the rewards they have reaped and being taxed properly.
Let them - someone else will take their market share of proffits, even at a reduced rate
Funny how we let EDF (French owned) take profits from the nuclear power plants and to build new ones, but as soon as the Gov hit them with windfall taxes, they threaten to pull out of the North Sea
Untrue
Invest in renewables + storage. Keep the oil and gas in the ground.
Unscrupulous greedy blackmailers. Let's slash millions from their tax support, in fact let's take back the concessions they've got and do a Norway. Vast amounts of windfall money - our money - landing in their bank accounts. My bill from £85 to £250 for same home usage.
Win win.
Yes, sure it will. Anything to thwart the Socialists. So how are they going to show that? By publishing figures that mean bugger all in the first place! More propaganda for the Tories. 'We told you so!' Crap.
That will please the Scots GreenSnp's😁
And there's the growth from the Tory budget!!
Some wants to ‘Stop oil’ anyway
Windfall tax anyone? Was it worth it?
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