UK increases windfall taxes on North Sea Oil and Gas Producers
Finance Minister Rachel Reeves said on Wednesday that the British government would increase its windfall tax for North Sea oil-and-gas producers from 35% to 38% and extend it by one year. Reeves, who presented the first budget of the new Labour Government, said that the increase in the windfall tax - also known as the Energy Profits Levy - will come into effect on November 1. The headline tax rate for oil and gas activity is now 78%. This is among the highest rates in the world. The duration of the law will be extended an additional year, until March 2030.
Financial Times - Oct 16
These are the most popular stories from the Financial Times. These stories have not been verified and we cannot vouch for the accuracy of these reports. BBC, the British broadcaster, has announced plans for 155 job cuts across its news operations. This is part of a larger cost-cutting plan worth 700 million pounds (915 million dollars). Woodside Energy, an Australian oil and natural gas company, announced on Wednesday that it will delist next month from the London Stock Exchange in order to cut down the administration costs of the business. Ratings agency Moody's warned that UK water companies may struggle to raise capital by 2030…
British Business – September 6
These are the most popular stories in the British business pages. These stories have not been verified and we cannot vouch for the accuracy of these reports. According to a new study, British pension funds have the lowest level of support for their own stock market among developed economies. This will fuel debates about reforming UK retirement pots in order to boost the London Stock Exchange. BMW plans to launch its first hydrogen powered vehicle in 2028 using the fuel cell technology it developed with Toyota Motor Corp. ASOS, the British online retailer…
Hitec, a unit of Eni, wins support for a large floating wind farm
Flotation Energy, a joint-venture between Eni Plenitude, and HitecVision private equity, announced on Tuesday that their floating offshore project Green Volt had won a contract in Britain's most recent renewable energy auction. They said that the 2.5 billion pound initiative ($3.28 billion), which will have a maximum capacity of 560 megawatts and be supported by incentives from government, is on track to become the largest floating offshore wind farm in support. The ship will be 80 km (50 miles), off the coasts of Scotland's northeast. Vaargroenn's…
UK North Sea Tax Changes Mean $12 Billion Revenue Drop, Industry Body Says
An industry group warned on Monday that the British government's plans to raise a windfall-tax on North Sea oil producers will result in a drop of nearly 16 billion pounds in state revenue and accelerate a fall in production. The Labour government elected in July has stated that the changes will assist in achieving a ramp up in renewable energy and a shift away from oil and natural gas in order to reduce carbon emission and help curb global climate change. Offshore Energies UK, an industry group, predicted that the changes will reduce tax revenues by 12 billion pounds from 2025 to 2029 when compared with the current tax regime.
NEO Energy reduces UK investment plans due to fiscal and regulatory uncertainty
NEO Energy announced on Monday that it would slow down its investment in all of its portfolios due to the uncertainty surrounding fiscal and regulatory issues in the British oil sector. NEO is the owner of half the Buchan Horst project in the UK North Sea. Serica Energy, Jersey Oil & Gas and NEO are the joint venture partners. They own 30% and 20% respectively. The British government has decided to delay the assessment of environmental statements as it plans to launch a consultation for new environmental guidelines on oil and gas project. In late July, the Labour government announced that it would raise the Energy Profits Levy from 35% to 38 % starting November 1.
Britain announces that the Trans-Pacific Trade Agreement will come into effect by December 15
The British Government announced on Thursday that its agreement to join Comprehensive and Progressive Agreement for Trans-Pacific Partnership will enter into effect by December 15th this year, after receiving the final ratification needed. CPTPP, or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, is a free-trade agreement signed in 2018 by 11 countries: Australia, Brunei (Burma), Canada, Chile, Japan Malaysia, Mexico New Zealand, Peru Singapore, Vietnam. The UK is the sole European member of CPTPP, and it was the first country to join the agreement since its creation.
UK faces legal action for new North Sea oil and Gas Licences
A marine conservation group is challenging in court the decision of Britain to issue new oil and natural gas exploration licenses. The organization claims that ministers failed to take into account the impact of these licences on marine life. Oceana UK has filed a lawsuit against 31 licenses granted by the previous British government to the North Sea Transition Authority in May of this year, as part of its latest round for oil and gas licensing. A licence for exploration does not always lead to a producing field. However, environmental groups…
Siemens Gamesa, GRI Renewables Invest in NE England Offshore Wind Production
Siemens Gamesa and GRI Renewables Industries will invest more than $360 million into offshore wind manufacturing facilities in northeast England.Siemens Gamesa will invest a total of $258m to expand its blade manufacturing site located near Hull - Britain's largest offshore wind manufacturing facility - readying it for the next generation of offshore wind turbines and blades greater than 100 metres, the government said.Siemens Gamesa will add 200 workers to the 1,000 it already employs in the factory, the company said in a separate statement.GRI Renewable Industries will spend more than $100m to build an offshore wind turbine tower factory at Able Marine Energy Park…
Activists Climb Shell North Sea Platform
Greenpeace activists boarded two Royal Dutch Shell oil platforms in the British North Sea on Monday in protest against plans to leave parts of the giant structures in place after production shuts down.Pictures provided by Greenpeace show two people in yellow hats scaling one of giant two large, rusty structures and unfurling a banner reading "Clean up your mess, Shell!"Shell confirmed that protesters boarded the Brent Alpha platform and the Brent Bravo concrete legs.Shell is in the process of dismantling the 40-year-old Brent field east of the Shetland islands, in what is known as decommissioning, as its oil and gas reserves dwindle after producing more than 500,000 barrels a
Oil at Six-week High
Oil prices hit a six-week high on Thursday as oil rigs in the Gulf of Mexico were evacuated ahead of a storm, while an incident with a British tanker in the Middle East highlighted tensions in the region.Brent crude futures were up 32 cents at $67.33 a barrel by 1153 GMT. Earlier in the session they hit their highest since May 30 at $67.65, after ending Wednesday up 4.4%.U.S. West Texas Intermediate crude futures were up 25 cents at $60.68 a barrel, having touched their highest since May 23 at $60.94. They gained 4.5% in the previous session.A day after Iran warned Britain would face "consequences" over the seizure of an Iranian oil tanker…
Argentina Grants Offshore Exploration Permits
Argentina awarded permits to begin hydrocarbon exploration in 18 areas off the coast of the country in the Malvinas West basin to companies including Exxon Mobil Corp, Total SA, YPF SA and Royal Dutch Shell Plc, the government said on Friday.The winning companies offered bids totaling $724 million, the government said, to explore the areas that are located in the South Atlantic, some near the Malvinas Islands under the control of the British government, but whose sovereignty is claimed by Argentina.The other companies that will make up exploration consortia include BP…
UK Fracking Tsar Quits
The British government's fracking tsar Natascha Engel said on Sunday she had quit the role after just six months because government policy was preventing the industry from developing.Fracking, or hydraulically fracturing, involves extracting gas from rocks by breaking them up with water and chemicals at high pressure.It is fiercely opposed by environmentalists who have raised concerns about potential groundwater contamination and say extracting more fossil fuel is at odds with Britain's commitment to reduce greenhouse gas emissions.Engel, who was appointed the Commissioner for Shale Gas to act as a link between local communities…
World’s Largest Offshore Wind Farm Opens
The world's largest offshore wind farm will open on Thursday off the northwest coast of England when Danish energy group Orsted unveils the Walney Extension project.The wind farm has a capacity of 659 megawatts (MW), enough to power almost 600,000 homes, and overtakes the London Array off England's east coast which has a capacity of 630 MW.Walney Extension is made up of 87 turbines built by Siemens Gamesa and MHI Vestas, and covers 145 square kilometers (55 square miles), which is equivalent to around 20,000 football pitches.The 40 eight-megawatt MHI Vestas turbines being used stand 195 meters (213 yards) tall and are the largest wind turbines in operation globally.Orsted said
UK Gov't Gives Go-ahead for Fracking at Cuadrilla Shale Gas Site
The British government said it has given consent for hydraulic fracturing at shale gas developer Cuadrilla's Preston New Road site in Lancashire, subject to certain conditions."I have carefully considered Cuadrilla's application and I am content that Hydraulic Fracturing Consent should be granted in this instance," Energy and Clean Growth Minister Claire Perry said in a statement.Reporting by Nina Chestney
UK Takes Extra Measures to Support Shale Gas Development
The British government announced measures on Thursday to speed up planning applications to support development of the country's shale gas industry.Increasing reliance on imported gas as Britain's domestic North Sea output declines is one of the driving forces behind government support for hydraulic fracturing, which involves extracting gas obtained from rocks broken up or fractured with water and chemicals at high pressure.However, it is impossible to know exactly how much shale gas might be underground - and, more importantly, how much can be…
GE to Trial World’s Largest Wind Turbine in UK
U.S. conglomerate General Electric will test the world's largest wind turbine in a facility in northeast England, it said on Tuesday. GE Renewable Energy, the renewable arm of the U.S. firm, and the British government-funded Offshore Renewable Energy Catapult signed a five-year agreement to test GE's Haliade-X 12 megawatt (MW) turbine in Blyth, Northumberland. "This is an important agreement because it will enable us to prove Haliade-X in a faster way by putting it under controlled and extreme conditions," John Lavelle, president & CEO of GE's Offshore Wind business said in a statement.
Thompson takes over from Founder Heavey, Tullow Oil
Tullow Oil plc (Tullow) announced the appointment of Dorothy Thompson as independent non-executive Director and Chair-designate of Tullow with effect from the conclusion of the Group’s Annual General Meeting (AGM) on 25 April 2018. It is anticipated Thompson will succeed Aidan Heavey, Tullow’s current Chairman and Founder, as Chair at the conclusion of the Board meeting scheduled for 20 July 2018. Aidan will retire from the Board at the same time. Thompson (57) brings extensive experience to Tullow having served for 12 years as CEO of Drax Group plc, the international power and energy trading company, until the end of 2017.
BP North Sea Field to Test U.S. Iran Policy
Serica acquires Rhum field from BP, co-owned by Iran; seeks U.S. licence to operate in Rhum field. A small gas field on the edge of the British North Sea could become a litmus test for U.S. policy towards Iran. London-based BP this week agreed to sell to North Sea producer Serica Energy three fields in the ageing offshore basin, including the Rhum field which is co-owned by a subsidiary of Iran's national oil company. For Serica, the $400 million deal will increase its production sevenfold. It nevertheless hinges on the British company receiving a licence from U.S. sanctions enforcement authorities at a time when President Donald Trump is flexing his muscles against Tehran.
A BP North Sea field to test U.S. policy on Iran
A small gas field on the edge of the British North Sea could become a litmus test for U.S. policy towards Iran. London-based BP this week agreed to sell to North Sea producer Serica Energy three fields in the ageing offshore basin, including the Rhum field which is co-owned by a subsidiary of Iran's national oil company. For Serica, the $400 million deal will increase its production sevenfold. It nevertheless hinges on the British company receiving a licence from U.S. sanctions enforcement authorities at a time when President Donald Trump is flexing his muscles against Tehran.
