Industry group OEUK urges the UK government to fast-track fiscal reforms to the oil and gas sector, potentially unlocking £15 billion in revenue and boosting domestic production.
BP is exiting the North Sea due to the current tax and regulatory environment, indicating reduced UK upstream exposure.
Offshore Energies UK reports that accelerating the transition to a new fiscal regime could generate £15 billion in additional tax revenue by 2035. The industry lobby group argues that replacing the current windfall tax earlier than 2030 would stimulate investment and reduce reliance on energy imports.
The industry argues that the current Energy Profits Levy and exploration bans are stifling investment, leading companies to scale back or exit the North Sea basin.
Companies like BP are reassessing their UK operations due to the regulatory environment, with BP actively working to exit its standalone North Sea business.