In an announcement despatched to Rigzone just lately, trade physique Offshore Energies UK (OEUK) highlighted that the UK Exchequer Secretary to the Treasury, James Murray, “co-hosted a fiscal discussion board at Offshore Energies UK’s Aberdeen workplaces with senior trade leaders”.
“The affect of adjustments to additional prolong and lift the Power Income Levy (EPL), or windfall tax, and the potential removing of vital capital allowances for the sector had been central to discussions,” OEUK mentioned within the assertion.
These coverage adjustments are rocking the boldness of companies and their traders within the UK’s international competitiveness and its means to attain a homegrown vitality transition, OEUK famous within the assertion, including that the offshore energies sector is a strategic nationwide asset.
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“It helps 200,000 jobs all through the UK and contributes GBP 20 billion ($25.6 billion) a yr to the Treasury, underpinning nationwide vitality safety,” OEUK highlighted.
Within the assertion, OEUK CEO David Whitehouse mentioned, “we thank the minister for the frank assembly”.
“Discussions between authorities and trade within the coming weeks earlier than the Autumn Assertion might be important to safe funding within the sector and ship on the federal government’s dedication to safeguard jobs,” he added.
“The minister once more heard in no unsure phrases direct from senior enterprise leaders in regards to the affect these proposals are already having for companies of all sizes and their expert individuals proper throughout the entire of the UK. Choices made by this authorities within the coming weeks might jeopardize hundreds of jobs and billions of kilos in financial worth,” Whitehouse continued.
Whitehouse famous within the assertion that “everybody within the room shared the minister’s ambition for a clear vitality future”.
He added that “this future can solely be achieved in partnership with the oil and gasoline sector and by insurance policies that assist jobs, entice funding and anchor enterprise right here within the UK”.
“There is no such thing as a easy alternative between oil and gasoline and renewables – we’d like each to ship vitality safety and a homegrown transition,” he warned.
When Rigzone requested HM Treasury (HMT) for touch upon OEUK’s assertion, a HMT consultant despatched Rigzone a readout of the fiscal discussion board with the oil and gasoline sector.
“The assembly was to debate how the UK authorities and trade can accomplice to assist shield jobs because the UK transitions to wash vitality,” the readout acknowledged.
“This assembly represented a possibility for the minister to listen to from the sector following the adjustments to the Power Income Levy introduced on 29 July,” it added.
“These adjustments embody extending the EPL from 31 March 2029 to 31 March 2030, eradicating the funding allowance that was included within the levy when it was first launched, and rising the speed of the levy from 35 to 38 % from 1 November 2024,” it continued.
The readout acknowledged that, throughout discussions, the minister acknowledged the sector’s important contribution to the UK economic system, in addition to its vital position within the vitality transition, and famous that Murray reiterated that the federal government is dedicated to managing the transition in a method that doesn’t danger jobs in Scotland.
HMT’s readout mentioned the Exchequer Secretary held a constructive dialogue with attendees on the affect of the EPL and highlighted that the minister underlined how vital the sector is for jobs. He additionally famous the significance of the federal government supporting the sector’s decarbonization work via the levy’s decarbonization funding allowance, the assertion mentioned.
The readout additionally revealed that the minister mentioned the longer term design of the oil and gasoline tax regime as soon as the EPL involves an finish in 2030, in addition to how income raised from the adjustments to the EPL will go in the direction of serving to to fund Nice British Power (GBE).
GBE might be headquartered in Scotland and can personal, handle, and function clear vitality tasks throughout the nation, the assertion highlighted.
In that readout, Murray famous that, “because the UK transitions to wash vitality, it’s critical we work carefully with the oil and gasoline sector”.
“Having engaged with the sector while in opposition, I look ahead to persevering with discussions now in authorities and dealing collectively to assist funding and jobs in Scotland,” he mentioned.
“We are going to make sure the UK’s vitality provide is safe and we are going to set up Nice British Power as a brand new, publicly owned, clear vitality firm, that’s set to chop payments and create hundreds of jobs in Britain, funded via income from the Power Income Levy,” he continued.
The readout highlighted that attendees on the discussion board comprised OEUK, the North Sea Transition Authority (NSTA), BP, Shell, Harbour Power, Eni, Whole Energies, Equinor, NEO, CNOOC, Spirit, EnQuest, Petrofac, Baker Hughes, and Subsea 7.
OEUK describes itself because the main commerce physique for the UK’s offshore energies trade. Its membership contains over 400 organizations with an curiosity in offshore oil, gasoline, carbon seize and storage, hydrogen, and offshore wind, OEUK famous in its assertion.
To contact the writer, e-mail andreas.exarheas@rigzone.com
