Shell To Reconsider Plans For Investments In UK
Following the government’s decision to increase tax on oil and gas companies’ surplus earnings, Shell declared that it will review its plans to invest up to 25 billion pounds in the UK over the next ten years.
At the Confederation of British Industry’s annual conference in Birmingham, Shell UK Chairman David Bunch remarked, « We’re going to have to consider each project separately. – You have fewer disposable money and investment opportunities when you pay higher taxes. »
In response to skyrocketing energy prices, British Treasury Secretary Jeremy Hunt last week revealed intentions to raise the North Sea extraction tax from 25% to 35% in an effort to close a significant financial gap for the government.
With the oil and gas companies’ excess profits tax, the sector would have one of the highest tax burdens in the world, at 75%. However, it permits tax deductions for the majority of investments made in new oil and gas developments.