Smaller operators in the North Sea are expected to be hardest hit by windfall tax
Concerns grow for UKCS investment
Commentators are unconvinced that tax relief on spending will offset the impact of windfall levy uncertainty
UK finance minister Rishi Sunak claims his new 25pc supplementary tax on UK continental shelf (UKCS) profits “contains in it a very generous investment incentive” that will encourage activity in the basin even after its operators have been clobbered for £5bn ($6.3bn) in the new levy’s first year. But analysts are unsure the reality will match his intentions, particularly given the windfall tax could last for up to three-and-a-half years and might even become more punitive. “We have already had BP announce, in the past 24 hours, that it is now reviewing all of its investment in the UK economy in the aftermath of this decision, simply on the basis that it is not a one-off tax,” Michael Hewson,
Also in this section
2 April 2026
Alongside a rapid continued build-out of renewables, China’s latest five-year plan stresses the value of domestic hydrocarbon production for energy security and calls for increased Russian gas imports
2 April 2026
The government is taking important steps to revive domestic production, lift investment and benefit from the geopolitical crisis even if more needs to be done in the longer term
1 April 2026
Golden Pass’s startup offers QatarEnergy a timely boost but may also force a difficult choice between honouring disrupted contracts and capitalising on soaring spot LNG prices
1 April 2026
It is not a case of if or when, but the length and magnitude of economic damage from elevated oil prices
