NEO Energy slows UK investment plans on fiscal, regulatory uncertainty (updated)
02/09/2024 07:43
(Adds detail and background throughout)
Sept 2 (Reuters) - NEO Energy on Monday said it will
slow down investment across its portfolio in view of fiscal and
regulatory uncertainty in the British oil and gas sector.
NEO owns half of the Buchan Horst development project in the
UK North Sea. Serica Energy and Jersey Oil & Gas are its joint
venture partners owning 30% and 20%, respectively.
Assessments of environmental statements have been deferred
as Britain plans to start a consultation on new environmental
guidance for the oil and gas projects.
The Labour government in late July said it would increase
the Energy Profits Levy (EPL) from 35% to 38% starting Nov. 1.
"Against this uncertain backdrop, NEO and its 100% owner
HitecVision, have taken the decision to materially slow down
investment activities across all development assets in its
portfolio," it said.
Earlier on Monday, industry group Offshore Energies UK said
the British government's proposed plans to increase a windfall
tax on North Sea oil and gas producers would lead to a 12
billion pound ($15.77 billion) drop in revenue to the state.
($1 = 0.7612 pounds)
(Reporting by Yamini Kalia and Yadarisa Shabong in Bengaluru;
Editing by Varun H K and Mrigank Dhaniwala)
((mailto:Yamini.Kalia@thomsonreuters.com;))