Latest news with #AmjadBseisu
Gulf Insider
6 days ago
- Business
- Gulf Insider
North Sea Oil Producer Slams The UK's Windfall Tax
The chief executive of Enquest criticizes the UK's Energy Profits Levy, claiming it is doing 'irreversible damage' to the oil and gas industry and discouraging investment. Due to the heavy tax burden, the company is planning a 'disciplined approach' to investment and expects to pay a significant amount in windfall tax in June 2025. Enquest argues that the UK is the only country levying a windfall tax on its domestic energy producers where no windfall profits exist, further impacting competitiveness. The boss of Enquest has slammed the windfall tax on oil and gas firms as doing 'irreversible damage' to the industry and 'driving job losses across the sector'. Amjad Bseisu, Enquest's chief executive, called for the North Sea tax to be scrapped in an operations update on Tuesday after claiming it makes the UK a less attractive place to invest. The UK Energy Profits Levy (EPL) was introduced in May 2022 and applies to oil and gas companies operating in the North Sea. It is designed to tax the extra profits these companies made due to surging energy prices after Russia's invasion of Ukraine. Initially, the rate was 25 per cent, but it later jumped to 35 per cent in January 2023. The tax has been extended by Chancellor Rachel Reeves to run until March 2030, but has a 'price floor' mechanism, which allows it to end early if prices fall significantly. London-listed company Harbour Energy slammed the government's 'punitive fiscal position' earlier this month as it axed 250 jobs in Aberdeen. Bseisu argued: 'The recent stepdown in commodity prices has further amplified calls for the UK government to remove the Energy Profits Levy and return the North Sea to a position of global competitiveness.' The World Bank last month forecasted that weakening global growth amidst geopolitical turmoil was set to push commodity prices down 12 per cent in 2025, followed by another five per cent in 2026. This would mark the lowest levels of the 2020s and bring an end to the price boom fuelled by the COVID-19 pandemic recovery and the Russia and Ukraine war. Bseisu said the UK was 'the only country levying a windfall tax on homegrown energy producers, where no windfall profits exist.' As a result of the heavy tax burden, the FTSE 250 firm has laid out a 'disciplined approach' to investment plans for the next 18 months. The company plans to pay nearly $100m (£73.7m) in windfall tax in June 2025, which would mean most tax payments for the year will be made in the first half. As a result, the firm expects cash outflows to to be lower in the final six months of the year. Enquest expects operating expenses to top $450m in 2025 but remains committed to 'ongoing' cost reductions. Bseisu said: 'We remain focused on delivering a material UK transaction in the short term, and we are resolute in our belief that our relative advantages, both operational and fiscal, see us ideally placed as a North Sea consolidator.'
Yahoo
27-05-2025
- Business
- Yahoo
Miliband's North Sea shutdown causing ‘irreparable damage'
Ed Miliband's retreat from the North Sea is causing 'irreversible damage' to Britain's oil and gas industry, a leading energy producer has warned. Amjad Bseisu, chief executive of listed oil company EnQuest, criticised the Energy Secretary's windfall tax, claiming it had sparked a swathe of job losses. He has called for an urgent rethink on the levy as falling oil prices pile more pressure on North Sea firms, which are facing a 78pc tax on profits. Mr Bseisu said: 'The recent stepdown in commodity prices has further amplified calls for the UK Government to remove the Energy Profits Levy and return the North Sea to a position of global competitiveness. 'The status quo, which sees Britain as the only country levying a windfall tax on homegrown energy producers, where no windfall profits exist, is resulting in irreversible damage to this strategic national industry and is driving job losses across the sector.' His comments come as a growing number of North Sea producers consider cutting jobs and scaling back investment. This is partially in response to the Government's decision to increase the oil and gas windfall tax from 75pc to 78pc last year, while also extending the levy for an extra year to 2030. The industry has also been hammered by Mr Miliband's decision to ban all new drilling in the North Sea, as he seeks to prioritise investment in renewables to help Britain achieve its net zero targets. Mounting pressure led to Harbour Energy, the UK's largest oil and gas producer, announcing plans to cut 250 jobs in Aberdeen earlier this month. Scott Barr, managing director of Harbour Energy's UK business, blamed the job losses on 'the Government's ongoing punitive fiscal position and a challenging regulatory environment'. A new report also revealed that Britain's oil and gas industry is already suffering an exodus of staff. According to a survey by the Aberdeen and Grampian Chamber of Commerce, almost half of North Sea producers said their employees were leaving the UK to work abroad. They said the moves were caused by weak domestic confidence, uncompetitive government policy and a lack of viable projects in the UK. It comes after a separate analysis found last week that the windfall tax would leave 1.5bn barrels of oil and gas stuck in abandoned North Sea oil wells. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
27-05-2025
- Business
- Telegraph
Miliband's North Sea shutdown causing ‘irreparable damage'
Ed Miliband's retreat from the North Sea is causing 'irreversible damage' to Britain's oil and gas industry, a leading energy producer has warned. Amjad Bseisu, chief executive of listed oil company EnQuest, criticised the Energy Secretary's windfall tax, claiming it had sparked a swathe of job losses. He has called for an urgent rethink on the levy as falling oil prices pile more pressure on North Sea firms, which are facing a 78pc tax on profits. Mr Bseisu said: 'The recent stepdown in commodity prices has further amplified calls for the UK Government to remove the Energy Profits Levy and return the North Sea to a position of global competitiveness. 'The status quo, which sees Britain as the only country levying a windfall tax on homegrown energy producers, where no windfall profits exist, is resulting in irreversible damage to this strategic national industry and is driving job losses across the sector.' His comments come as a growing number of North Sea producers consider cutting jobs and scaling back investment. This is partially in response to the Government's decision to increase the oil and gas windfall tax from 75pc to 78pc last year, while also extending the levy for an extra year to 2030. The industry has also been hammered by Mr Miliband's decision to ban all new drilling in the North Sea, as he seeks to prioritise investment in renewables to help Britain achieve its net zero targets. Mounting pressure led to Harbour Energy, the UK's largest oil and gas producer, announcing plans to cut 250 jobs in Aberdeen earlier this month. Scott Barr, managing director of Harbour Energy's UK business, blamed the job losses on 'the Government's ongoing punitive fiscal position and a challenging regulatory environment'. A new report also revealed that Britain's oil and gas industry is already suffering an exodus of staff. According to a survey by the Aberdeen and Grampian Chamber of Commerce, almost half of North Sea producers said their employees were leaving the UK to work abroad. They said the moves were caused by weak domestic confidence, uncompetitive government policy and a lack of viable projects in the UK. It comes after a separate analysis found last week that the windfall tax would leave 1.5bn barrels of oil and gas stuck in abandoned North Sea oil wells.
Reuters
12-02-2025
- Business
- Reuters
UK energy firm EnQuest forecasts higher production in 2025
Feb 12 (Reuters) - British energy group EnQuest (ENQ.L), opens new tab forecast higher annual production on Wednesday, helped by its recently announced deal to buy Vietnamese assets from London-listed Harbour Energy (HBR.L), opens new tab. The group's net production from its existing portfolio averaged 44,200 barrels of oil equivalent per day in January, and it expects pro forma 2025 production to be between 40,000 and 45,000 boped. The firm's production in 2024 averaged 40,736 boped, it said. Advertisement · Scroll to continue Last month, EnQuest said it would acquire Harbour Energy's business in Vietnam as the North Sea-focused company aims to expand outside its home market. "EnQuest is successfully delivering its strategy to grow its international footprint, with successive transactions in South East Asia providing geographic and commodity diversification within the portfolio," EnQuest CEO Amjad Bseisu said on Wednesday. The company will announce its final audited results in March.
