UK oil giant hits pause

September

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UK oil and gas major NEO Energy has decided to slow down its investment plans across its portfolio, citing uncertainty over recent government policy changes.

The company, which owns 50% of the Buchan Horst development project, along with partners Serica Energy and Jersey Oil & Gas, is responding to a range of recent government announcements affecting the oil and gas sector.

Last week, the Department for Energy Security and Net Zero announced plans to begin a consultation with the industry on new environmental guidance, following the Finch Supreme Court ruling.

This consultation is expected to conclude in spring 2025.

While the consultation is ongoing, the offshore petroleum regulator for environment and decommissioning is expected to defer the assessment of all environmental statements, including those already in progress, such as the Buchan Horst project.

On 29th July, the government announced an increase in the Energy Profits Levy to 38%, raising the marginal tax rate to 78% and extending the levy’s sunset date to 31st March 2030.

The government also plans to consult on changes to the fiscal regime beyond this date.

In response to these developments, NEO Energy has chosen to slow down investment activities across all their development assets significantly.

The company is awaiting further clarity on the UK regulatory and fiscal framework, which may delay the expected start of oil production from the Buchan Horst project, originally forecast for late 2027.

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The post UK oil giant hits pause appeared first on Energy News Beat.

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