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UK Signals Readiness for Oil & Gas Tax Shift with £50 Billion Energy Investment

By MGN EditorialMarch 5, 2026 at 08:42 PM

The UK offshore energy industry is in talks with the government to unlock a multibillion-dollar investment boost by replacing the energy profits levy.

The UK's offshore energy industry is signaling its readiness to work with the government on a regulatory shift that could unlock £50 billion in new investment, according to a report from [Offshore Energy](https://www.offshore-energy.biz/uk-signals-readiness-for-oil-gas-tax-shift-with-50-billion-energy-investment-in-play/). Offshore Energies UK (OEUK), the trade body for the UK's offshore energy industry, has taken steps to engage in talks with the government to strike a deal that would replace the current energy profits levy (EPL) with a new framework. The proposed shift aims to incentivize the industry to invest in domestic energy production and infrastructure. 'We believe the time is right to work with government on a new investment-focused tax regime that will unlock the £50 billion of investment our industry is ready to make,' said OEUK chief executive Deirdre Michie. 'This would boost the UK's energy security, create high-skilled jobs and support the transition to a lower-carbon future.' The EPL, introduced in 2022, has been criticized by the industry as a deterrent to new investment. OEUK argues that a revised tax regime could spur the industry to develop new oil and gas fields, as well as invest in clean energy projects like carbon capture and storage. The potential £50 billion investment boost would support the UK government's goals of boosting domestic energy production and accelerating the transition to renewable and low-carbon energy sources. Industry leaders see this as a critical opportunity to align regulatory policy with the sector's long-term sustainability and growth objectives.
#oil and gas#energy policy#investment#UK

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