The UK’s largest oil and gas producer wants to reduce its exposure to the North Sea and switch its stock market listing to the US amid fears of a Labour tax raid.
In a major blow to the industry, London-listed Harbour Energy is said to be considering selling stakes in its North Sea oil fields.
The move comes after Energy Secretary Ed Miliband outlined plans to hike taxes on oil and gas firms’ earnings from 75 per cent to 78 per cent – making the duty among the highest in the world.
Windfall taxes were originally introduced in response to soaring energy prices following Russia’s invasion of Ukraine and will now be extended until the end of the decade.
In a further setback for the oil and gas sector, the Government is preparing to scrap tax incentives for investment and block new exploration licences.
Chancellor Rachel Reeves is expected to announce the crackdown alongside a host of tax hikes in her first Budget next week. The Budget is likely to include a raid on pensions, inheritance tax and capital gains tax alongside a rise in fuel duty.
Business leaders warn a double-whammy of tax hikes and the £5billion cost of new workers’ rights regulations will hit the economy and cost jobs.
Industry group Offshore Energy UK has said the attack on the North Sea will put thousands of jobs at risk and deal a £13billion blow to Britain’s economy.
In response, Harbour has revived plans to switch its stock market listing to the US in a blow to the City, according to news agency Reuters.
According to the reports, the firm plans to acquire a US-listed company that will allow it to list in New York and move its headquarters to America.
Harbour paused the search for a US firm last year when it decided to buy German rival Wintershall Dea’s non-Russian portfolio for £8.5billion.
That deal, finalised last month, allowed Harbour to diversify outside the North Sea and more than doubled its production.
The company has also launched a sale process of its stakes in the Armada, Everest, Lomond, Catcher and Tolmount fields as it seeks to reduce its exposure in the North Sea, the report said.
A spokesman said: ‘We are a London-listed company and as long as our geographical centre of gravity is in Europe it wouldn’t really make sense to move the listing.’
It is not the only firm to warn about Miliband’s plans.
Ithaca Energy said in August that Labour’s tax plan would result in ‘long-term damage’ on the sector.
A month earlier, Ineos Energy said it would prioritise expansion in the US and Denmark as Britain’s policies ‘put pain’ on the oil and gas industry.
