North Sea oil company demands windfall tax overhaul after £63m hit

North Sea oil company EnQuest is demanding an overhaul of Jeremy Hunt’s windfall tax after claiming it has been hit by an effective rate equal to 113pc of profits. The company suffered a £25m loss last year after paying taxes of £63m, according to its annual results. EnQuest was also hit by other corporation taxes, landing it with a total bill of £207m. The results are another sign of the damaging impact the windfall tax is having on the UK’s oil and gas operators. Fellow drilling companies such as Harbour Energy have already vowed to halt investment in the North Sea. A spokesman for Enquest said: “We believe legislative reform is required to restore confidence in the UK oil and gas sector to protect jobs and deliver energy security and decarbonisation.” The windfall levy was introduced in 2022 when the Russian invasion of Ukraine triggered surging global energy prices, handing massive profits to oil and gas operators. It meant oil and gas operators faced a nominal taxation rate of 75pc. However, the tax is ring-fenced, meaning it applies only to the profits from oil and gas extraction. It does not take account of the costs companies may incur in other operations – meaning...

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