Ithaca Energy PLC (LSE:ITH) said it is actively engaging with the government to highlight the damage an increase to the Energy Profits Levy and scrapping capital relief will have on the North Sea.
Ithaca is set to become one of the North Sea’s largest producers once it concludes a merger with Italian group Eni’s UK business and said it is making representations to the government to highlight the long-term damage to UK energy security the policies can do.
Its comments, alongside first-half results, echo an open letter sent by the industry today by lobby group Offshore Energies UK.
In an open letter to HM Treasury and reported by the BBC, 42 companies warned that official plans threaten £200 billion of investment in all forms of domestic energy, including renewables.
Signatories include manufacturing, engineering and technology companies, with Offshore Energies UK saying small companies accounted for the vast majority of signatories.
"The companies investing in nascent opportunities like floating offshore wind and carbon capture and storage will require the cashflow from a stable and predictable oil and gas business to fund these opportunities," said the letter.
"Sufficient investment in the UK energy transition can only happen if we support, not undermine our domestic oil and gas sector."
Ithaca, meanwhile, reported a 45% fall in underlying profits to US$533 million in the half year to end June 2024 with production dropping to 53,000 barrels a day on average from 76,000.
Net cash flow was US$560 million with a dividend commitment of US$500 million this year and next reiterated,.