Member Info for kign

there you go Hunt, the real profits are in the oil traders/banker's pockets:

https://www.trafigura.com/press-releases/trafigura-publishes-2022-annual-results-showing-a-strong-performance-in-a-highly-challenging-environment/

In UK, spend capex on gas. do tolmount east, get Cygnus from Neptune/Eni, some Culzean and more Elgin Franklin.

Cancel Viking CCS and pull out of Acorn! Join pertamina as as partner for Abadi, Petronas for East natuna and do CCS in Indonesia instead.

cancel Viking CCS now and pull out of Acorn!

don't expect any changes... HBR as the largest North sea producer showed no leadership

still no statement from LC....what is she doing?

...as expected, still no comments from LC!

I hope she does not pay herself a mega bonus like last year again.

sorry not COP-ed but decommissioned!

from my interpretation, tax relief only applies for assets within RFCT...so yes to electrification, conversion of platforms from diesel/gas turbines to renewables but not CCS as Viking has COP-ed in 2019.

Bachus, you believe those incentives will still stay with Labour?

Sekforde, you probably referred to the wrong poster...

Rookie, HBR can still do CCS in Indonesia, just not in the UK.

Fib, UK assets are now worth almost zero.

Although dated now, I think Deloitte has done a good job summarising the view from o&g independents:

https://taxscape.deloitte.com/article/upstream-oil-and-gas-taxation-changes---energy-profits-levy.aspx

Oil and gas companies may question whether the policy delivers on its aim to tax extraordinary profits for a number of reasons, including:

1. Many companies required to pay under the Levy will not have generated any profits over the entire lives of their portfolios to date (due to having incurred significant start-up costs);

2. The Levy will apply to all profits, including those where hedging arrangements have meant that super-profits have been passed to derivative counterparties; and

3. There is, at present, no sign that taxable items not associated with increased commodity prices will be excluded (for instance the receipt of Petroleum Revenue Tax refunds or chargeable gains).

LC's inaction will cost HBR, even SSE has already put out a reply: https://www.bbc.co.uk/news/uk-63687512.amp

Even worse, you should see that the taxes will bring no value/benefit to the country and £133B will be stolen/wasted again: https://archive.ph/i05kG

I think you are right Stevo12 on the fair value, read through oil taxation manual today and I don't see how HBR can get out of this easily. It can also worsen as the economics of HBR's mature fields will now be worse off and will likely see a further reserves downgrade. I hope I'm wrong but I don't see how LC can pull anything amazing out of her pocket.

All the best to remaining shareholders & to the shorters, please don't be too greedy!

sorry school boy error, my calculations should result in 58.6%.

unfortunately the example shown is a very bad way of putting it e.g. double counting of investment allowance and first year capex allowance in supplementary tax and epl.

You get first year capex allowance anyway before EPL, so the new rules should actually mean the best case tax rate is 46.4% = 30% RFCT + 62.5% tax relief on Supplementary Tax + 29% tax relief on EPL.

with this autumn statement, the Tories have effectively signed their death certificate and HBR should plan with a labour government in mind i.e. potentially higher windfall taxes and no more tax relief in 2 years.

This is not at all comparable to Norway's 100% capex
tax rebate.

to make it worse, it's US$70/bbl!

you pay tax on the country where your profits originate.

since the debt are UK originated it means HBR can offset their debt payments against their profit.

that's one way of reducing your UK profits isn't it? Borrow against UK production which will result in minimal profit in the UK.

Then use it to expand future development outside the UK.

If PR is reading this, they need to show their forecast production 2023 and beyond.

I'm glad to see the international expansion line growing bigger :)

I hope she's a woman of her words:

Should the chancellor levy UK oil and gas companies further — a second time in six months — he risks driving investment out of the UK altogether.
He will do so at a time when investment — both in production and transforming infrastructure for CO2 capture and storage — is critical to the UK’s energy security and longer-term energy transition.

seems pointless to send a message behind a paywall?