• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Wind droughts
  • 4 hours "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 5 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 1 day Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 5 hours The Federal Reserve and Money...Aspects which are not widely known
  • 2 mins Uniper is over - Germany (Government) buys the Company
  • 5 hours "Oil prices likely not responsible for inflation and other energy insights by hedge fund manager Josh Young" - Kitco News interview by David Lin
  • 3 hours "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 13 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 6 days "Dodgy Demand Data? The Oil Price Collapse Conspiracy" by Alex Kimani
  • 13 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 10 days Is Europe heading for winter of discontent with extensive gas shortages?

Breaking News:

Germany’s Floating LNG Terminal Delayed

The Wildcard For Oil Markets Next Week

The Wildcard For Oil Markets Next Week

Oil markets are looking at…

Central Asia Caught Between China And The West As It Cuts Ties Russia

Central Asia Caught Between China And The West As It Cuts Ties Russia

Central Asian countries are diversifying…

UK’s Market-Defying North Sea Oil IPO Falls Flat

After braving high-level market volatility in Britain’s biggest IPO of the year, North Sea oil and gas producer Ithaca Energy warned that any further boost to a UK windfall tax would render the aging basin uneconomical as an energy crisis engulfs Europe. 

“The government has structured the EPL in a very thoughtful manner to continue to promote investment in the North Sea [...],” Ithaca Chairman Gilad Myerson told Reuters on Wednesday, the day the company went public. 

However, Myerson continued, if the windfall tax is strengthened, and if “they take away the investment allowance, then obviously it will become uneconomical to develop fields in the North Sea”. 

In May, the UK implemented a 25% windfall tax on oil and gas producers in the North Sea amid soaring energy costs and intense media pressure headlining North Sea profits. 

The UK Energy Profits Levy was intended to fund measures to support households. 

While the market watched with excitement given the absence of any IPOs in Europe since Russia’s war on Ukraine, Ithaca’s IPO (IPO_IHEG.L, LON:ITH) on Wednesday fell flat, with shares opening 2% below issuing price and then fell by up to 6% before recouping losses, closing at 230 GBX

Ithaca’s was also the first IPO in five years featuring an oil and gas exploration and production company. 

Myerson was hoping that the IPO would be proof of the North Sea’s investment attractiveness in the face of Russia’s war on Ukraine and despite the current windfall tax. 

“The fact that we’ve listed. It’s five years in the UK without an (E&P) IPO. It just demonstrates that there is a lot of willingness from investors to support E&P companies and support domestic supply. We hope this will also be a turning point for other companies to increase investor interest in the North Sea,” Myerson told Energy Voice on Wednesday. 

Ithaca says it is also planning to make a final investment decision on the Cambo field next year, according to Reuters, though Shell is simultaneously seeking to divest its own 30% stake in the same field. 

By Charles Kennedy for Oilprice.com

More Top Reads from Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News