Oil Daily | UK Urged to Replace North Sea Windfall Tax; CNOOC Finds Major Oil Field in South China Sea

【Latest Oil Policies】

The UK government is urged by the North Sea Transition Taskforce to replace the current windfall tax on North Sea oil and gas operations before its expiration in 2030. The taskforce argues that the Energy Profits Levy is stifling investment and placing the UK industry at a competitive disadvantage.

【Oil-Producing Countries Dynamics】

President Donald Trump threatened Iran with bombings and sanctions if a new nuclear deal is not reached, following Iran's refusal to negotiate directly with Washington. Iran is open to indirect negotiations but insists the U.S. must uphold its commitments from the previous agreement. Trump's comments include the potential for secondary sanctions.

President Trump also threatened secondary sanctions on Russia's energy industry if a ceasefire deal for Ukraine isn't reached. He proposed a 25% tariff on Russian oil as punishment, aligning this strategy with previous actions against Venezuela. Such measures could increase oil prices, conflicting with Trump’s aim for affordable energy.

【Industry News】

China's state energy company CNOOC has discovered a new oil field in the South China Sea, potentially containing over 100 million tons of crude oil. The Huizhou 19-6 field exemplifies China's pursuit of deepwater resources to reduce energy import dependence, despite challenges in exploration and production.