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North Sea Shares following Labours north sea plans

North Sea Shares following Labours north sea plans


Small-cap oil and gas companies which operate in the North Sea have tumbled after the Labour Party confirmed its plans to create a publicly-owned clean energy business funded through windfall taxes.

As well as creating Great British Energy, Labour has promised to not award any new licences to oil and gas firms in a bid to "ensure a phased and responsible transition in the North Sea”.

As a result, shares in Serica Energy PLC dropped 9.5%, Deltic Energy PLC fell 18%, Jersey Oil and Gas PLC tumbled 19.5% and Ithaca Energy PLC slipped 3%.

Cleantech companies also traded lower at the prospect of new competition, with the likes of Inspirit Energy Holdings PLC losing a quarter of its market capitalisation.

Keir Starmer talking on the topic today said: "We want the oil and gas companies to pay fair tax on the massive profits that they’re making."

Shell and BP both held flat in reaction.

Read the latest issue of the OGV Energy magazine HERE

Published: 13-06-2024

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