· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on the Financial Times or enjoy below:
🗞️ Driving the news: David Latin, chair and interim CEO of Serica, one of the UK's top independent oil and gas producers, compared the North Sea tax regime to working in a "war zone" and revealed the company is actively seeking opportunities overseas due to the challenging fiscal environment
🔭 The context: Serica and other smaller companies in the North Sea basin face punitive taxation, significantly affecting profits and making investments uneconomical
• Labour’s proposal to increase windfall taxes and reduce tax relief for capital investments further complicates the situation
🌍 Why it matters for the planet: The debate over taxation and new oil and gas exploration in the North Sea is intertwined with broader climate goals
• Labour's pledge to halt new licenses for North Sea fields aims to mitigate the climate crisis but raises concerns about energy security and job losses
⏭️ What's next: Serica plans to remain operational in the UK while exploring growth opportunities abroad
• The outcome of the general election could impact the future of windfall taxes and investment allowances, influencing the economic viability of North Sea projects
💬 One quote: “While we remain watchful for opportunities in the UK that might be attractive despite this increasingly challenging context, we are also looking very actively overseas.” – David Latin, Chair and Interim CEO, Serica
📈 One stat: Serica has contributed about £500 million in UK taxes since 2020 and is responsible for about 5% of the country’s gas production
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