Equinor Reconsiders UK Investments Amid Labour's Tax Policy Overhaul

Equinor is reassessing its investment in the UK oil and gas sector following changes in tax policies under the new Labour government. The company's international operations head highlighted concerns over the fiscal regime impacting economic viability, particularly for the Rosebank project. Labour's election manifesto includes increasing windfall taxes and halting new exploration licences.

Norway's Equinor may reconsider its investment in the UK oil and gas sector if the Labour government changes the industry's tax regime, a top company executive disclosed to Reuters. Philippe Francois Mathieu, the head of Equinor's international operations, expressed apprehensions about the attractiveness of further investments under the expected taxation changes.

'We need to look at our appetite to invest further in the UK based on the fiscal regime ... it could be that the economics are really, really hard impacted,' Mathieu emphasized during an energy conference. This sentiment specifically relates to the future of the substantial Rosebank oilfield project that Equinor is developing with Ithaca Energy.

The company has already committed $3.8 billion to the first phase of Rosebank, the largest offshore oil project in Britain in recent years. They are awaiting further developments before solidifying any long-term plans. Mathieu noted that understanding the new fiscal policies under Labour would be crucial for deciding their future investment strategies in the UK.

(With inputs from agencies.)