19 Dec ‘Many’ North Sea operators reconsidering 2023 investment due to windfall tax
‘Many’ North Sea operators reconsidering 2023 investment due to windfall tax
“Many” North Sea operators are now reconsidering their 2023 spending plans due to the windfall tax, the head of a membership group has said, with particular damage predicted to the supply chain.
Robin Allan, chairman of BRINDEX – an association of more than 20 independent operators including Harbour Energy, Ithaca Energy (LON: ITH) and EnQuest (LON: ENQ) – said he’s “not surprised” to see revisions as firms can no longer “safely plan on fiscal stability”.
The move will ultimately hurt the UK and its supply chain, Mr Allan warned.
He told Energy Voice: “The windfall taxes on our sector have already led many BRINDEX Members to reconsider their 2023 spending plans.
“This reduced expenditure will negatively impact and damage all of us but particularly damage the service sector in the UK”.
The comments come after Harbour Energy (LON: HBR), the top producer in the UK North Sea, said on Thursday it would shun the ongoing licensing round in the sector due to the levy.