(WO) – North Sea oil and gas operators met with UK Chancellor of the Exchequer Rachel Reeves to discuss energy security and the ongoing impact of the Energy Profits Levy (EPL), according to a statement from the Aberdeen & Grampian Chamber of Commerce.
UK Chancellor Rachel Reeves
The meeting followed several weeks of discussions between industry representatives and the UK Treasury regarding the future of the windfall tax on oil and gas producers. Operators have previously indicated they could invest up to £50 billion in the UK energy sector through 2050 if the EPL were replaced by the government’s proposed Oil and Gas Price Mechanism (OGPM).
Russell Borthwick, chief executive of the Aberdeen & Grampian Chamber of Commerce, said the industry welcomed the government’s recognition that the current levy must be reconsidered.
“We welcome the Chancellor’s recognition that the EPL must come to an end now. Events in the Middle East strengthen, not weaken, the case for change,” Borthwick said. “The offer on the table was billions of pounds worth of investment, which can be unlocked overnight if the right fiscal and regulatory conditions are in place.”
Borthwick added that the potential investment could support jobs, strengthen supply chains and reinforce the UK’s energy security. “There has never been a more important, more urgent moment to back the North Sea and invest in domestic production,” he said, adding that changes to the fiscal framework could help reverse a trend of the UK “exporting jobs and importing oil and gas from volatile regions.”
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