North Sea Oil Producers Say New Tax Rules Mean Faster Decline

Changes to the UK’s windfall tax regime for oil and gas companies will accelerate the decline of the North Sea, said companies and analysts.

Chancellor of the Exchequer Rachel Reeves outlined the new Labour government’s plans on Monday, raising the Energy Profits Levy by three percentage points and ending a 29% investment allowance. She said the changes would bring in annual revenue of £1.2 billion ($1.5 billion) to help fill a black hole in the public finances left by the previous government.

An aging oil province like the North Sea, where most fields are heavily depleted and the remaining untapped ...