# Equinor evaluating impact of British windfall tax on projects
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-11-23
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Equinor Evaluates Impact of Britain's Windfall Tax on
Meta Description: Equinor faces uncertainty after UK raises windfall tax to 35%, impacting Rosebank project and investor confidence.
URL: https://financedigest.com/equinor-evaluating-impact-of-british-windfall-tax-on-projectshtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-11-22t154513z2lynxmpeial0purtroptp4equinor-oil-britain-1736814827917-compressed.jpg)

By Ron Bousso

LONDON (Reuters) -Norwegian oil company Equinor said on Tuesday it is evaluating the impact of Britain’s windfall tax on its oil and gas projects, including the giant Rosebank development.

The British government’s decision last week to raise the windfall tax on North Sea producers to 35% from 25% “does not help investor confidence,” Equinor said in a statement.

Uncertainty makes it harder to take investment decisions, especially the uncertainty around the longevity of the EPL ( [Energy Profits Levy),”](https://www.financedigest.com/eu-will-propose-windfall-levies-on-energy-firms-von-der-leyen-says.html "EU will propose windfall levies on energy firms, von der Leyen says") Equinor said, referring to the tax.

The Autumn Statement did not help [investor confidence and we are evaluating the impact of the EPL on our projects,” the company](https://www.financedigest.com/shipping-companies-feel-the-heat-as-investors-shun-coal.html "Shipping companies feel the heat as investors shun coal") added in the statement provided to Reuters.

Shell on Monday also said it was reviewing its 25 billion pound investment plans in Britain in the wake of the windfall tax, which brought the total [taxes on the oil](https://www.financedigest.com/uk-oil-gas-firms-to-leave-years-worth-of-output-in-ground-with-tax-hikes-report.html "UK oil, gas firms to leave year’s worth of output in ground with tax hikes-report") and gas sector in Britain to 75%, among the highest in the world.

Equinor is preparing to make a final [investment decision on the Rosebank project](https://www.financedigest.com/sse-to-invest-122-million-in-scottish-pumped-hydro-project.html "SSE to invest 2 million in Scottish pumped hydro project") in the North Sea, one of the largest developments in recent years, in the first quarter of 2023.

The field is [expected to produce 70,000 barrels of oil](https://www.financedigest.com/oil-rises-on-saudi-oil-production-expectations.html "Oil rises on Saudi oil production expectations") equivalent per day (boed) at its peak.

The Rosebank project is estimated to bring 26.8 billion pounds to the [British economy through tax payments](https://www.financedigest.com/crown-agents-bank-owner-explores-sale-of-british-payments-group-sources.html "Crown Agents Bank owner explores sale of British payments group –sources") and investments, Equinor said.

Equinor and Suncor Energy each have a [40% interest in the Rosebank project](https://www.financedigest.com/automotive-coolant-aftermarket-is-projected-to-exhibit-a-cagr-of-4-0-through-the-forecast-period-2020-2030.html "Automotive Coolant Aftermarket is projected to exhibit a CAGR of 4.0% through the forecast period 2020-2030"), while newly-listed Ithaca Energy has the remaining 20%.

(Reporting by Ron Bousso; Editing by Jane Merriman and Alexander Smith)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---