Work on North Sea’s ‘best remaining oil field’ delayed amid fears of Labour tax raid
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 05 2024
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Source: Yahoo Finance
- Buchan Oil Field Development: The Buchan oil field, located 80 miles northeast of Aberdeen, contains an estimated 100 million barrels of oil with an additional 40 million in adjacent fields.
- Political Uncertainties Delay Development: Labour's threats of new levies and tax break removal have caused the postponement of work on the Buchan field for at least a year due to political uncertainties surrounding the North Sea's future.
- Impact on Industry: Jersey Oil and Gas, along with partners, need fiscal clarity amid potential changes in taxation, as Labour pledges to halt new exploration licenses, increase offshore profit taxes, and remove tax breaks.
- Project Details: The Buchan field project involves drilling and production permits, but uncertainty over taxation changes has led to delays, affecting the timeline for oil production until 2027.
- Analyst Warnings: Analysts warn that Labour's tax plans could be devastating for North Sea operators, leading to lower investments, job losses, higher emissions, and energy security risks for the UK.
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.
