September 26, 2022
Windfall tax 'risks billions in North Sea investment' says industry chief

The caution comes amid increasing calls for North Sea companies to pay a one-off charge on unexpectedly large profits, a result of rocketing international fuel prices, to help households and energy-intensive industries cope with higher bills.

But such a levy could risk industry plans to invest in green infrastructure such as wind farms, hydrogen plants and carbon-reduction technology, according to Offshore Energies UK (OEUK) chief executive Deirdre Michie, and risk billions of pounds in investment being moved to other countries.

OEUK projections show £200 billion to £250 billion has been set aside by energy companies to build offshore wind farms, hydrogen production plants and carbon capture facilities and maintain oil and gas supplies.

In a speech at the membership organisation’s conference in Aberdeen on Tuesday, Ms Michie will contend that the charges would not just damage company profits but also drive up the cost of borrowing money for new projects in the UK, making them more expensive and in some cases “unviable”.

» continue to The Scotsman