APA Corporation said in an SEC filing that its assessment of the impact of the windfall tax, officially known as the Energy Profits Levy EPL, resulted in findings that continued production in the UK North Sea would be uneconomical
U.S. oil producer Apache plans to cease oil production at its assets in the UK North Sea by 2030, due to the windfall tax on operators. Apache ’s parent company . The Labour’s Autumn Statement confirmed last week that the windfall tax on UK North Sea operators is rising to 38% from 35%, effective November 1, 2024. The tax will now expire on 31 March 2030, a year later than the previous tax regime. The government is also removing the 29% investment allowance.
Now Apache joins a growing list of companies reconsidering their presence in the UK. “The Company determined the expected returns do not economically support making investments required under the combined impact of the regulations, and it will cease production at its facilities in the North Sea prior to 2030,” it said in the securities filing of the Q3 financial results. The company’s investment program in the North Sea is now directed toward asset safety and integrity, APA said.
North Sea Oil Oil Production Oil Exploration Windfall Tax
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