LONDON, Nov 21 (Reuters) - Shares in some London-listed oil
and gas producers including Tullow Oil, Premier Oil
and Cairn Energy fell on Thursday after the main
opposition Labour Party pledged to raise taxes on the sector if
it wins a Dec. 12 election.
Labour said in its manifesto it would introduce a "windfall"
tax on oil companies "so that the companies that knowingly
damaged our climate will help cover the costs."
It added it would safeguard jobs and skills that depend on
the offshore oil and gas industry.
Tullow shares were down 1.4%, falling to their lowest since
2016, Premier shares fell 1.9% and Cairn shares 1.3% by 1219
GMT.
Oil prices, which often influence share prices of
oil and gas producers, turned positive on Thursday, erasing
earlier losses.
Industry body Oil and Gas UK (OGUK) said it had received no
further information other than the manifesto Labour published.
"Any increase in tax rates will drive investors away and
damage the long-term competitiveness of the UK's offshore oil
and gas industry, threatening jobs and future tax revenues and
needlessly damaging the UK economy," said Gareth Wynn, OGUK
stakeholder and communications director.
"Meeting as much as possible of UK demand from our own
sources avoids offshoring emissions to other countries and helps
us maintain the industrial expertise we need for engineering a
future net zero energy system here in the UK."
Tullow and Premier declined to comment. Cairn did not
immediately respond to a request for comment.
"It is not currently clear who the tax would be applicable
to, how it would be calculated, or over what time frame it would
be payable," analysts at Redburn said in a note.
"BP, Shell, Total, Eni, Exxon, Equinor and Repsol all have
operations in the UK, so could in theory be targeted alongside
the UK (exploration and production companies)."
(Reporting by Shadia Nasralla
Editing by Mark Heinrich)
