Oil platforms in the Cromarty Firth
Can the UKCS adapt again?
The windfall tax is a blow. But the basin has rebounded from being written off before
UK continental shelf (UKCS) producers may still be reeling from UK finance minister Rishi Sunak’s late-May bombshell of an additional 25pc tax raid on their profits. However, the measures announced did contain a significant tax break for new capex, particularly for those not already benefitting from a favourable UK tax position. The consensus is that, clearly, the UK North Sea’s renaissance of recent years will be retarded by what Sunak is calling the Energy Profits Levy (EPL). But there is a greater range of views on how severe the hit will be and whether the UKCS, written off more than once before, can again navigate a path to sunnier climes. On the more bearish side, the incentive to inve
Also in this section
29 April 2026
Trafigura’s $1b prepayment agreement confirms African resource holders’ renewed interest in oil-backed financing deals as they look to capitalise on high oil prices
29 April 2026
The UAE’s departure from the oil producers’ group was a surprise to many, but the move can be traced back to a single point five years ago
28 April 2026
Oil traders warning of $200/bl oil are wrong, and the market should be wary of proclamations that the impact of the oil shortage has only begun to be felt and a that a ‘harsh adjustment’ is coming—even for industrialised nations
28 April 2026
Restoring supply from Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain and Iraq involves complexities far beyond simply adjusting operational controls
