- Jun 09, 2023, 5:00 PM CDT
Critics contend that the ESIM falls short of changing investment conditions or encouraging banks to provide more capital to oil and gas companies, thus failing to reassure companies like Total, Enquest, and Harbour Energy that have withdrawn from key projects.The government needs to do more than ease the windfall tax to reassure troubled North Sea oil and gas companies over the UK’s investment climate and protect future production, warned Offshore Energies UK .
“This is a step in the right direction, but many more will need to be taken to restore confidence to our sector. We will now work closely with government and lenders to understand the detail of the measure and its effectiveness at unlocking investment,” he said., which establishes a price floor at $71.40 per barrel and 54p per therm.
Based on forecasts from the Office for Budget Responsibly, ESIM will not be triggered before the tax’s planned end date in March 2028.