North Sea Tax: Oil Giant Warns of Damage
- Enquest CEO Amjad Bseisu has attacked the UK government's Energy Profits Levy, arguing it inflicts "irreversible damage" on the North Sea energy sector.
- The Energy Profits Levy, introduced as a windfall tax, was extended by Chancellor Rachel Reeves until March 2030.
- Bseisu contends that the UK is unique in levying a windfall tax on domestic energy producers when, in his view, no actual windfall profits exist.
Enquest CEO Amjad Bseisu warns of “irreversible damage” to the North Sea energy sector due to the UK’s Energy Profits Levy—find out why. He blasts the government’s windfall tax, especially with commodity prices predicted to fall, which amplifies calls to remove the levy. Declining prices and geopolitical instability threaten to further diminish the sector’s global competitiveness, according to Bseisu. Harbour Energy has also taken action, slashing jobs amidst the fiscal policies. Enquest projects significant tax payments in the first half of 2025. News Directory 3 is closely monitoring the unfolding situation. Discover what’s next regarding Enquest’s cost-cutting measures and strategic plays in the North Sea.
Enquest CEO Criticizes UK North Sea Tax as Costs Mount
updated May 27, 2025
Enquest CEO Amjad Bseisu has attacked the UK government’s Energy Profits Levy, arguing it inflicts “irreversible damage” on the North Sea energy sector. Bseisu’s remarks come as commodity prices are projected to fall, intensifying calls to scrap the tax.
The Energy Profits Levy, introduced as a windfall tax, was extended by Chancellor Rachel Reeves until March 2030. It includes a “price floor” mechanism that could trigger its early termination if prices drop substantially.
Bseisu contends that the UK is unique in levying a windfall tax on domestic energy producers when, in his view, no actual windfall profits exist. He emphasized that declining commodity prices have amplified the need to restore the north Sea’s global competitiveness by eliminating the Energy Profits Levy.
earlier this month, Harbour Energy, also listed in London, slammed the government’s fiscal policies after cutting 250 jobs in Aberdeen.
The World Bank forecasts a 12% drop in commodity prices in 2025, followed by another 5% decrease in 2026, citing weakening global growth and geopolitical instability. These declines would mark the lowest levels of the 2020s, ending the price surge triggered by the COVID-19 pandemic and the Russia-Ukraine war.
Enquest anticipates nearly $100 million in windfall tax payments in June 2025, concentrating most of the year’s tax obligations in the first half. The company expects lower cash outflows in the latter half of the year as an inevitable result. Operating expenses are projected to exceed $450 million in 2025, but Enquest remains focused on continued cost reductions.
Bseisu said Enquest is dedicated to securing a substantial UK transaction soon, believing its operational and fiscal advantages position it as a leading north Sea consolidator.
What’s next
Enquest plans to maintain a disciplined approach to investment over the next 18 months, while actively pursuing strategic opportunities in the North Sea.