French energy giant TotalEnergies (PARIS: TTE)has emerged as the North Sea’s top tax payer in new data issued by the UK government.
The firm has been selling off significant UK oil and gas assets including the Shetland gas plant seemingly in an effort to reduce its liabilities in the UK.
The annual report for the UK’s Extractive Industries Transparency Initiative (UK EITI) shows just 35 oil and gas companies made a £7.5 billion contribution to the exchequer last year.
UK EITI said extractive revenues rose by £763 million (11%) in 2023 – significantly higher than previous years, with the increase is mainly due to the Energy Profits Levy (EPL) which increased payments by £2.2 billion in 2023.
The report shows TotalEnergies was also subject to paying the largest windfall tax, £821million, followed by BP (LON: BP) at £621m and Shell (LON: SHEL) £369m.
© Supplied by UK EITI/ DCT/ RoddyTotalEnergies UK country chair Nicolas Payer said:”Our significant contribution to the UK Treasury is a reflection of the fact that TotalEnergies is one of the largest producers of oil and gas in the UK.
“However, we maintain that a competitive and stable fiscal regime remains vital if we are to ensure the future of, and investment in, the UK’s critical energy sector. Engagement with Government has begun, but there is still more work to do.”
Warnings for Starmer
The data comes as the industry issues dire warnings about the future of the industry ahead of the UK government’s budget at the end of the month.
Offshore firms and the GMB trade union have issued stark warnings about the impact of the UK government’s tax policies on jobs.
In a statement, Offshore Energies UK chief David Whitehouse, GMB general secretary Gary Smith and Association of British Independent Exploration Companies chief Robin Allan warned plans to end North Sea drilling risk catastrophic job losses – the “equivalent of a Grangemouth refinery closing nearly every week from 2025 to 2030”.
Earlier this month, bosses at PetroIneos, who own the Grangemouth site, confirmed the refinery will close in the second quarter of 2025, with the loss of 400 jobs.
At the weekend, Sharon Graham, the general secretary of the Unite union, branded the planned closure a “horrific act of industrial vandalism”.
Labour has already committed to increase the controversial windfall tax on oil and gas profits, to 78%, extending it until at least 2029 and removing investment allowances.
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