General – Unstable Fiscal Regime
Sir Jim Ratcliffe’s Ineos Energy has halted all new investment in the UK and will divert spending to the United States, citing Britain’s ‘unstable fiscal regime’ and high energy prices.
Brian Gilvary, chairman of Ineos Energy, said in an interview with The Telegraph that the company has already committed £3billion to US projects and would not be deploying further capital in Britain. He argued that constant changes to North Sea taxation have made the UK one of the least predictable energy regimes in the world.
The move follows the closure earlier this year of the Grangemouth oil refinery in Scotland after a century of operation, with Ineos also warning that its neighbouring Olefins and Polymers site is under threat.
According to The Telegraph, Ineos has been hit hard by the Energy Profits Levy, introduced at 75% under the Conservatives and raised to 78% by Labour. The company operates assets including the Breagh and Clipper South platforms, as well as a stake in the Greater Laggan gas fields, with all production feeding into the UK system.
Gilvary contrasted Britain’s policy environment with that of the US, where stable taxation and a focus on energy security have underpinned rapid growth in domestic oil and gas production. “For us, the future lies in other countries, mostly the United States,” he said.
