Ann: UK Southern Gas Basin - Operational Update, page-201

From Ithaca Energy Annual Report end of last week (27/3)

Reduction in investment innear-term projects as a direct result of the Energy Profits Levy includingdeferred or cancelled projects at the Greater Stella Area, Montrose ArbroathArea, Elgin Franklin Area and Alba

I haven't been able to find any reference to the status of Rosebank, Cambo, Teal West or Greater Buchan yet but they must be feeling the same pain as HHR and Ithaca.

Rosebank took FID in September and committed to $6bn AUD gross capex. At that time the Investment Allowance would have provided $5.46bn AUD in tax offsets so nett capex cost would have been $550m. Under Labours proposal nett capex would increase to $3.24bn. In addition the 91% "shelter" from cost overruns has also been halved.

How are Equinor/Ithaca going to deal with a 500% increase in capex? It must have a significant impact on project viability and the impact is similar for all other projects looking to be developed between 2024-2029.

While they haven't made any public statements regarding Rosebank IMO Equinor/Ithaca would be privately lobbying Labour about their proposed O&G policies. If Labour wants to access the 78% windfall tax from new developments they will need to find a way to provide an Investment Allowance to project developers.

Equinor, Ithaca and RockRose have a much stronger voice than HHR however, if they are successful in lobbying Labour, HHR will be a beneficiary.