Oil companies fear windfall tax

Worried North Sea oil companies are set to meet the Treasury today in a bid to avoid a potential windfall tax, which could be initiated to balance Gordon Brown’s books.

Link: Oil price boosts UK tax coffers

Smaller companies within the sector, such as Tullow Oil and Abbott, will argue that bigger players such as BP and Shell have presented the sector’s fortunes in too good a light.

Alasdair Locke, executive chairman of drilling group Abbot, told The Guardian that large oil companies appeared to think they would not be targeted because they were spending more.

‘It seems as clear as a pikestaff that the chancellor is in need of money, and he has got to borrow or raise taxation.’

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