Equinor is still working hard towards a final investment decision on the Rosebank oil field in the first quarter of next year, despite the latest windfall tax hike.

In a statement to Energy Voice, the Norwegian group said it was evaluating the impact of the EPL (energy profits levy) on its projects", but said work is still progressing on the £4.5billion development proposed for west of Shetland.

Equinor is operator of Rosebank, which is estimated to be capable of producing 300million barrels of oil, making it one of the largest untapped reserves in UK waters.

North Sea oil and gas producers were left reeling at the sheer size of the tax grab on the sector in last Thursday's Budget.

Chancellor Jeremy Hunt hiked the already-controversial EPL by another 10% to 35% - bringing the overall tax rate from January to an eye-watering 75%.

He has also extended the lifespan of the levy until March 2028 from the previous date at the end of 2025.

Massive tax take

The EPL is now expected to raise a total of £40billion - double the previous figure of £20billion. The total tax take from operators in British waters in the next six years will hit a staggering £80billion.

Earlier this week, it emerged that Shell is reviewing plans to invest up to £25billion in Britain's energy system after the UK Government's latest multi-billion-pound tax raid.

David Bunch, Shell's UK chairman, said that the expanded windfall levy is forcing his company to re-examine a slew of projects in the pipeline, from North Sea investments to renewable energy schemes.

Aberdeen's oil and gas industry is now waiting anxiously to see which Shell projects in British waters could now be under threat, and also any news from other operators on their future planned developments.

Equinor said that uncertainty is never helpful for large energy projects in the long term.

It said: "Uncertainty makes it harder to take investment decisions, and for UK especially the uncertainty around the longevity of the EPL did not help investor confidence. We are evaluating the impact of the EPL on our projects.

Working hard

"As for Rosebank, we are still working hard towards FID (final investment decision) in Q1 next year."

Equinor said Rosebank is "estimated to bring £26.8billion to the UK through tax payments and investments into the UK economy, and will strengthen energy security with oil and gas that is produced with lower carbon than imports, while creating value and jobs in the UK".

But the Scottish Government yesterday voiced opposition to the west of Shetland development.

In parliament, Environment Minister Mhairi McAllan was asked by Scottish Greens MSP Mark Ruskell whether the field should go ahead - to which she expressed opposition to new oil and gas licences being awarded by the UK Government.

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