North Sea oil and gas firm Harbour Energy have warned the government over tougher windfall taxes as it could “run the risk of undermining” future investments.
On 17 November the Chancellor Jeremy Hunt is preparing to announce his autumn statement to find away to fill the £50 billion black hole.
Linda Z Cook, chief executive said, “The recently enacted UK Energy Profits Levy (EPL) and speculation about further fiscal changes have created uncertainty for independent oil and gas companies like Harbour.
“As a result, evaluating expected returns from long-term investments has become more difficult and investors are advocating for geographic diversification.
“While we fully recognise the significant challenge in the UK to put public finances on a sustainable footing, we urge the Government to carefully consider the consequences of any increase in or extension of the EPL.
“At a time when oil and gas producers are being asked to invest more to help ensure the UK’s energy security and are considering longer term, material investments in CCS (carbon capture and storage), additional taxes would run the risk of undermining our ability to do either.”