Major UK oil and gas producers show cautious approval of taxation tweaks

The UK’s major oil and gas producers are welcoming the government’s change of tack Friday on the controversial Energy Profits Levy, but are still analysing the implications of the changes.

The government proposed that the Energy Security Investment Mechanism will see the current 75% rate on the Energy Profits Levy (windfall tax) removed if oil and gas prices fall in the future.

The tax rate will revert to 40% if the oil price reaches $71.40 per barrel and the gas price reaches £0.54