The North Sea has emerged as a hot topic in the 2024 UK election after numerous energy companies confirmed project delays due to concerns about a Labour-imposed windfall tax increase.
Earlier today, Jersey Oil and Gas PLC (AIM:JOG, OTC:JYOGF) cautioned that the UK general election could potentially slow the delivery of its Buchan gas field project.
Jersey and its partners said that the Buchan project’s timeline will be tied to securing fiscal clarity from the next government.
"With a UK General Election now announced, we are hopeful that fiscal clarity will be forthcoming in short order so that the industry can continue to do what it does best, namely investing in major capital projects that deliver vital low carbon homegrown energy and highly skilled jobs,” said Jersey chief executive Andrew Benitz.
Labour has pledged to raise the windfall tax on oil and gas companies by three percentage points, bringing the rate to an eye-watering 78%, to fund energy transition projects.
In May, Serica Energy PLC (AIM:SQZ), which also has a stake in Buchan, called on the UK government to reform the oil and gas tax regime.
SNP doesn’t rule out North Sea licences
Scotland's deputy first minister Kate Forbes today claimed that the Scottish National Party (SNP) has never been wholly opposed to new oil and gas licences being issued for the North Sea.
This is despite former leader Nicola Sturgeon being vocally opposed to new North Sea licences.
However, the current administration under new first minister John Swinney appears to be reconsidering this stance.
Forbes told journalists today: "We’ve been clear that we’re not against new licences per se, but they have to meet a climate compatibility test."
Ian Murray, Labour’s shadow Scottish secretary, rebuked Forbes’ statement: "For Kate Forbes to say that the SNP never argued against future oil and gas licences is just false – Humza Yousaf called new oil and gas ‘tantamount to climate change denial’ just months ago."