North Sea gas investment continues despite the UK governments windfall tax on energy companies.

Serica Energy, a North Sea gas producer, has said that its anticipated £60 million investment in UK gas production would offset a “large” portion of its windfall tax payments.

North Sea gas investment continues despite the UK governments windfall tax on energy companies.

Since last summer, the AIM-listed firm has reaped the benefits of rising gas prices, with pre-tax earnings of £135.1 million in 2021 compared to £12.5 million in 2020.

Last month, the government raised the tax rate on North Sea producers from 40% to 65% in order to raise funds to help families cope with rising energy costs.

The legislation contains an investment allowance, which means that corporations may save 91p on their tax costs for every £1 they spend on North Sea oil and gas development.

According to the Telegraph, Serica said it expected to spend roughly £60 million this year on drilling a new well and increasing output at an existing well, both of which it expects to be tax-deductible.

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