Oil Daily | UK Windfall Tax Hike Deters Investment; OPEC Production Drops Amid Libya Unrest; TotalEnergies Exits South African Gas Project
Wednesday, Sep 4, 2024 8:00 am ET
2min read 【Oil-Producing Countries Dynamics】
The UK government's plan to raise the windfall tax on North Sea oil and gas producers is expected to drive investments away from the region. Harbour Energy’s CEO warned the tax hike would make the UK less attractive compared to other countries. Concerns about reduced capital investment and lower tax receipts have been voiced by industry groups.
Equinor and other UK North Sea operators are awaiting clarity on the tax regime before committing to investments. Some companies, like Neo Energy, are already slowing down their investments due to fiscal and regulatory uncertainty.
OPEC's crude oil production fell by 70,000 barrels per day in August, mainly due to Libya's production issues amid civil unrest. While Kuwait and Nigeria increased their production, Iraq continued to exceed its quota.
South Africa's Energy Minister urged for more support from the government to help develop offshore oil and gas resources. Despite recent major discoveries, TotalEnergies announced its withdrawal from a key gas block due to economic challenges and lack of support from local companies.
【Latest Oil Policies】
The UK Labour Party intends to raise the Energy Profits Levy to 38% from November 2024 and extend it by a year to 2030. This could bring the headline tax rate on upstream oil and gas activities to 78%, up from the current 75%.
The Norwegian government is testifying to overturn a lower court ruling that invalidated the approval of several new oil and gas fields. The ruling cited the failure to consider emissions from burning petroleum. Aker BP, not party to the lawsuit, began oil production from the Tyrving development.
【Industry News】
Haiti's largest hydropower plant, Peligre, has been shut down due to protests. The plant's shutdown exacerbates the energy crisis, with significant challenges in repairing and maintaining the facility amid the country's instability.
Nigeria and China signed a comprehensive agreement to enhance collaboration in nuclear energy and other sectors. This partnership aims to boost development and stability in West Africa, with China investing heavily in Nigeria's infrastructure.
The capacity for North American LNG exports is set to double in the next three years, driven by projects in the U.S., Mexico, and Canada. Global LNG demand is expected to rise significantly, with Qatar leading new supply expansions.
【Company News】
Chevron and Cyprus are in a dispute over the Aphrodite natural gas field development. Cyprus accused Chevron of breaching its production-sharing agreement. The project’s future remains uncertain as legal proceedings could delay its development.
State-held ONGC of India is considering a $8.3-billion refinery and petrochemicals project in Uttar Pradesh to meet growing fuel demand. BPCL is also seeking a $3.8-billion loan to expand its refinery capacity.
The Trans Mountain Expansion Project has been completed, increasing the pipeline’s capacity from Alberta to British Columbia. This expansion is expected to boost Canadian crude oil prices and shift trade flows, affecting other pipeline operators like Enbridge.
Norwegian firm Aker BP announced the start of oil production from the Tyrving development, which uses existing infrastructure for low-emission operations. The Norwegian government is appealing a court ruling that invalidated the approval of several new fields due to environmental concerns.
【Others】
Haiti’s hydropower plant shutdown amid protests reveals significant challenges in energy supply and infrastructure repairs, further complicating the nation's energy crisis.
The dispute between Chevron and Cyprus over the Aphrodite gas field development could delay the project and lead to legal complications, highlighting challenges in international energy agreements.
Nigeria and China’s new nuclear energy partnership underscores the growing importance of international cooperation in advancing energy infrastructure and development goals.
The UK government's plan to raise the windfall tax on North Sea oil and gas producers is expected to drive investments away from the region. Harbour Energy’s CEO warned the tax hike would make the UK less attractive compared to other countries. Concerns about reduced capital investment and lower tax receipts have been voiced by industry groups.
Equinor and other UK North Sea operators are awaiting clarity on the tax regime before committing to investments. Some companies, like Neo Energy, are already slowing down their investments due to fiscal and regulatory uncertainty.
OPEC's crude oil production fell by 70,000 barrels per day in August, mainly due to Libya's production issues amid civil unrest. While Kuwait and Nigeria increased their production, Iraq continued to exceed its quota.
South Africa's Energy Minister urged for more support from the government to help develop offshore oil and gas resources. Despite recent major discoveries, TotalEnergies announced its withdrawal from a key gas block due to economic challenges and lack of support from local companies.
【Latest Oil Policies】
The UK Labour Party intends to raise the Energy Profits Levy to 38% from November 2024 and extend it by a year to 2030. This could bring the headline tax rate on upstream oil and gas activities to 78%, up from the current 75%.
The Norwegian government is testifying to overturn a lower court ruling that invalidated the approval of several new oil and gas fields. The ruling cited the failure to consider emissions from burning petroleum. Aker BP, not party to the lawsuit, began oil production from the Tyrving development.
【Industry News】
Haiti's largest hydropower plant, Peligre, has been shut down due to protests. The plant's shutdown exacerbates the energy crisis, with significant challenges in repairing and maintaining the facility amid the country's instability.
Nigeria and China signed a comprehensive agreement to enhance collaboration in nuclear energy and other sectors. This partnership aims to boost development and stability in West Africa, with China investing heavily in Nigeria's infrastructure.
The capacity for North American LNG exports is set to double in the next three years, driven by projects in the U.S., Mexico, and Canada. Global LNG demand is expected to rise significantly, with Qatar leading new supply expansions.
【Company News】
Chevron and Cyprus are in a dispute over the Aphrodite natural gas field development. Cyprus accused Chevron of breaching its production-sharing agreement. The project’s future remains uncertain as legal proceedings could delay its development.
State-held ONGC of India is considering a $8.3-billion refinery and petrochemicals project in Uttar Pradesh to meet growing fuel demand. BPCL is also seeking a $3.8-billion loan to expand its refinery capacity.
The Trans Mountain Expansion Project has been completed, increasing the pipeline’s capacity from Alberta to British Columbia. This expansion is expected to boost Canadian crude oil prices and shift trade flows, affecting other pipeline operators like Enbridge.
Norwegian firm Aker BP announced the start of oil production from the Tyrving development, which uses existing infrastructure for low-emission operations. The Norwegian government is appealing a court ruling that invalidated the approval of several new fields due to environmental concerns.
【Others】
Haiti’s hydropower plant shutdown amid protests reveals significant challenges in energy supply and infrastructure repairs, further complicating the nation's energy crisis.
The dispute between Chevron and Cyprus over the Aphrodite gas field development could delay the project and lead to legal complications, highlighting challenges in international energy agreements.
Nigeria and China’s new nuclear energy partnership underscores the growing importance of international cooperation in advancing energy infrastructure and development goals.
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