In a recent statement sent to Rigzone, industry association Offshore Energies UK (OEUK) highlighted that UK Chancellor of the Exchequer James Murray “hosted a finance forum at Offshore Energies UK’s Aberdeen offices alongside senior industry leaders.”

“The impact of changes to further extend and increase the Energy Profits Levy (EPL) or special tax, as well as the possible removal of key capital allowances for the sector, were at the heart of the discussions,” OEUK’s statement said.

These policy changes are shaking the confidence of companies and their investors in the UK’s global competitiveness and its ability to deliver an energy transition at home, the OEUK statement said. The offshore energy sector is a strategic national asset.

“It supports 200,000 jobs across the UK and contributes £20 billion ($25.6 billion) to the Treasury every year, ensuring national energy security,” OEUK stressed.

In the statement, OEUK CEO David Whitehouse said: “We thank the Minister for the open meeting.”

“Discussions between government and industry in the coming weeks ahead of the Autumn Statement will be critical to securing investment in this sector and delivering on the government’s commitment to safeguard jobs,” he added.

“The Minister once again heard very clearly directly from senior business leaders about the impact these proposals are already having on businesses of all sizes and their skilled workers across the UK. Decisions made by this Government in the coming weeks could put thousands of jobs and billions of pounds of economic value at risk,” Whitehouse continued.

Whitehouse noted in the statement that “everyone in the room shared the minister’s ambition for a clean energy future.”

He added: “This future can only be achieved in partnership with the oil and gas industry and through policies that create jobs, attract investment and anchor businesses here in the UK.”

“There is no easy choice between oil and gas and renewables – we need both to ensure energy security and a self-led energy transition,” he warned.

When Rigzone asked HM Treasury (HMT) for comment on OEUK’s statement, a representative of HMT sent Rigzone a summary of the financial forum with the oil and gas sector.

“The aim of the meeting was to discuss how the UK government and industry can work together to safeguard jobs as the UK transitions to clean energy,” the minutes say.

“This meeting provided the Minister with the opportunity to hear the views of the sector following the changes to the energy profit levy announced on 29 July,” it said.

“These changes include extending the EPL from March 31, 2029 to March 31, 2030, eliminating the investment allowance that was included in the levy when it was introduced, and increasing the levy rate from 35 to 38 percent from November 1, 2024,” it said.

The statement said that during the discussions the minister recognised the sector’s significant contribution to the UK economy and its important role in the energy transition. Murray reiterated that the government is committed to managing the energy transition in a way that does not put jobs in Scotland at risk.

The HMT statement said the Finance Minister had a constructive dialogue with participants on the impact of the EPL, stressing that the Minister had underlined the importance of the sector for employment. He also stressed the importance of the government supporting the sector’s decarbonisation work through the levy’s Decarbonisation Investment Allowance, the statement said.

The readout also revealed that the Minister discussed the future design of the oil and gas tax regime after the end of the EPL in 2030. He also spoke about how the revenue from the EPL changes will help fund Great British Energy (GBE).

GBE will be headquartered in Scotland and the company will own, manage and operate clean energy projects across the country, the statement said.

In that statement, Murray noted: “As the UK transitions to clean energy, it is vital that we work closely with the oil and gas industry.”

“Having engaged with the sector during my time in opposition, I look forward to continuing the discussions now in government and working together to support investment and jobs in Scotland,” he said.

“We will secure Britain’s energy supply and establish Great British Energy as a new, state-owned clean energy company that will drive down energy costs and create thousands of jobs in the UK. The company will be funded by revenue from the Energy Profit Levy,” he continued.

The minutes showed that participants in the forum included OEUK, the North Sea Transition Authority (NSTA), BP, Shell, Harbour Energy, Eni, Total Energies, Equinor, NEO, CNOOC, Spirit, EnQuest, Petrofac, Baker Hughes and Subsea 7.

OEUK describes itself as the leading trade body for the UK offshore energy industry. Its members include over 400 organisations with an interest in offshore oil, gas, carbon capture and storage, hydrogen and offshore wind, OEUK said in its statement.

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