North Sea firms postpone oilfield opening after early UK election called
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 05 2024
0mins
Source: Yahoo Finance
- Delay in Oil Production: Three British energy companies delay the start of oil production at a joint-venture oilfield in the North Sea by a year due to uncertainty about the fiscal policies of the next government.
- Companies Involved: Jersey Oil and Gas, Serica Energy, and NEO Energy are among the partners in the joint venture.
- Market Reaction: Shares in Jersey Oil and Gas fell by 18%, while Serica's shares dipped about 1.5% following the announcement.
- Political Influence: The decision is influenced by the UK's windfall tax impacting profits and potential changes in tax policies if the Labour Party wins the next general election.
- Future Plans: The Buchan Field Development Plan aims for approval by the end of 2024, with the first oil target now moved to late 2027 due to the early election call.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
