Advertisements

Harbour Energy Leaves North Sea Oil Operations Before Tax Increases

by Krystal

Harbour Energy, the largest oil producer in the British North Sea, has announced its intention to sell stakes in several North Sea oilfields. The company is also reviving plans for a listing in the U.S. This move aligns with a trend among oil and gas companies reducing investments ahead of anticipated tax increases in the sector.

The new Labour government, which took office in July, aims to use revenue from oil and gas to fund renewable energy projects. UK Finance Minister Rachel Reeves is expected to reveal these tax increases in her upcoming budget on October 30. As part of its strategy to limit its North Sea exposure, Harbour Energy is moving forward with the sale of stakes in the Armada, Everest, Lomond, Catcher, and Tolmount fields.

Advertisements

The UK’s oil and gas sector is already feeling the impact of heavy taxation. In March, Harbour Energy reported a net profit of $32 million for the year, but lower natural gas prices significantly affected its revenues. The government’s windfall tax on energy companies eliminated most of its pretax profit. Additionally, the company’s production in fiscal year 2023 declined to 186,000 barrels of oil equivalent per day, down from 208,000 in 2022.

Advertisements

In a bid to diversify beyond the North Sea, Harbour Energy recently completed a significant acquisition that more than doubled its production. Last December, the company acquired most of the upstream assets of Wintershall Dea for $11.2 billion in cash and shares, sourced from its shareholders BASF and LetterOne.

Advertisements

The acquired assets include Wintershall Dea’s operations in Denmark, Egypt, Germany, Libya, Algeria, Argentina, Mexico, and Norway. The deal also encompasses Wintershall Dea’s carbon dioxide capture and storage licenses in Europe. However, it excludes assets located in Russia and those involved in joint ventures with Russian firms.

Advertisements

Analysts have praised the acquisition, with Barclays noting it could greatly transform Harbour Energy. They anticipate that this will lead to increased company valuation. Over the past year, Harbour Energy’s shares have risen by 14.8%.

Related Topics:

Advertisements
Advertisements

You may also like

oftrb logo

Oftrb.com is a comprehensive energy portal, the main columns include crude oil prices, energy categories, EIA, OPEC, crude oil news, basic knowledge of crude oil, etc.

【Contact us: [email protected]

© 2023 Copyright oftrb.com – Crude Oil Market Quotes, Price Chart live & News [[email protected]]