Japex Exit Strategy: North Sea Stake for Sale Amid Tax Changes

Japan Petroleum Exploration (Japex) is considering selling its 15% stake in the Seagull oilfield in the British North Sea. The potential exit comes amid uncertainties over government tax plans. Japex aims to enhance the value of its UK operations, exploring a sale either through its local unit or its stake. The bid deadline is in December 2024.

Japan Petroleum Exploration (Japex) is planning to sell its stake in the British North Sea's Seagull oilfield, operated by BP, as uncertainties surrounding government tax policies grow.

Japex's 15% interest in the field, its sole asset in the region, has drawn attention from potential buyers. The field began production in 2023, and is expected to reach a peak output of 50,000 barrels of oil equivalent daily. Japex's decision reflects a strategic move caused by fiscal uncertainties as the UK government considers changing investment incentives.

With Japex having £150 million in tax losses, a buyer could potentially offset future investments in the area. As the energy sector faces a proposed increase in windfall taxes, additional firms like Exxon Mobil and Chevron have also exited the North Sea.

(With inputs from agencies.)