The EPL and investment allowance were introduced when Kwasi Kwarteng, now the UK’s finance minister, was energy minister
UK investment allowance gets to work
Greater enthusiasm is emerging not just for activity but also for projects promising near-term spend
The identity of the buyer of the Victory gas discovery on the UK continental shelf (UKCS), on which terms have now been agreed, remains confidential. But UK independent Reabold Resources, owner of almost half of the Corallian Energy vehicle being used to sell Victory, has been able to reveal that it is a “major” oil and gas firm. And that reflects measured optimism that the investment allowance element of the UK government’s controversial Energy Profits Levy (EPL) is not only encouraging activity, but also increasing M&A appetite for pre-production assets that can allow investment. Corallian and the Victory licence will have a £32mn ($34mn) price tag, of which Reabold will see a net £12.
Also in this section
14 April 2025
US consumers are not likely to see gasoline prices fall to Trump’s ‘beautiful number’, at least if the president also wants to encourage more drilling
11 April 2025
The Gulf state’s offer to supply electricity-starved Syria is an opportunity to support a key ally, but Doha’s ambitions to build broader pipeline networks to Turkey and Europe face challenges
11 April 2025
As the global economy grows, demand for materials is expected to increase. The way materials are made could incorporate new technologies in the future to ensure economic growth is more sustainable
10 April 2025
Technology, policy and narrative are the three biggest factors that could change the course of our 2050 outlook
