LONDON — TotalEnergies will reduce its planned investments in the UK North Sea by about 25% next year, according to a Reuters report.
This follows the UK government’s recent decision to increase the Energy Profits Levy on offshore oil and gas companies, introduced earlier this year, to 35%, raising the overall petroleum tax rate to 75% from January 2023.
The company’s UK subsidiary had apparently budgeted $491 million for North Sea expenditure next year.
Offshore Energies UK chief executive Deirdre Michie said last month’s decision to increase the levy was undermining investor confidence in the North Sea basin.
“Our industry was planning to invest £200 billion ($245 billion) in the broader energy sector—this includes low-carbon solutions—by 2030…
“But, as these latest reports show, these tax changes really do jeopardize this, and the onus is now on government to help build back investor confidence if we are to sustain these opportunities moving forward.”