Offshore Energies UK CEO, David Whitehouse and industry leaders met Chancellor of the Exchequer, Rachel Reeves MP this afternoon at Number 11 Downing Street to lay out the steps to reform of the Energy Profits Levy this year.
The Chancellor has asked the Financial Secretary and officials to work with industry on delivering long-term fiscal certainty, including clarity around the ESIM, while jointly navigating the current period of geopolitical volatility.
Those present agreed energy security is national security, and a stable, predictable investment environment is essential to delivering it. They agreed to work together in the coming days to set out a path toward a fiscal regime that supports responsible domestic oil and gas production, unlocks investment, and ensures fair return to the Treasury when prices are high.
The meeting closed with a commitment to work together to safeguard UK energy, UK jobs, strengthen supply chains, and secure affordable, homegrown energy for the long term.
David Whitehouse, Chief Executive, OEUK comments:
'At a time of huge global uncertainty, the UK should be making decisions for the long term?in the interests of energy security, prioritising domestic production of oil and gas and supporting jobs. This fundamental need has been brought into sharp focus by recent events.
'Today’s meeting with the Chancellor followed weeks of in-depth discussions with industry, which took place at the instigation of the Treasury.
'The government has committed to work with us in the coming days to find a solution to replace the Energy Profits Levy so industry can make investments in homegrown energy. This will enable greater energy security, tax revenues and growth for the UK economy.
'On the basis of this proposed change our members identified additional investment in the UK Continental Shelf (UKCS) that could begin next year.
'And this is just the first step. The industry is ready to invest up to £50 billion in new activity by 2050 with a functioning regulatory regime.
'We welcome that the Chancellor recognised the need for the EPL to end and appreciated her time to discuss these issues in person, during which North Sea operators reaffirmed their unwavering commitment to reducing our reliance on imports and bolstering UK energy, economic and national security at a time of geopolitical crisis.'
Source: OEUK
