The EPL and investment allowance were introduced when Kwasi Kwarteng, now the UK’s finance minister, was energy minister
UK investment allowance gets to work
Greater enthusiasm is emerging not just for activity but also for projects promising near-term spend
The identity of the buyer of the Victory gas discovery on the UK continental shelf (UKCS), on which terms have now been agreed, remains confidential. But UK independent Reabold Resources, owner of almost half of the Corallian Energy vehicle being used to sell Victory, has been able to reveal that it is a “major” oil and gas firm. And that reflects measured optimism that the investment allowance element of the UK government’s controversial Energy Profits Levy (EPL) is not only encouraging activity, but also increasing M&A appetite for pre-production assets that can allow investment. Corallian and the Victory licence will have a £32mn ($34mn) price tag, of which Reabold will see a net £12.
Also in this section
1 April 2026
Golden Pass’s startup offers QatarEnergy a timely boost but may also force a difficult choice between honouring disrupted contracts and capitalising on soaring spot LNG prices
1 April 2026
It is not a case of if or when, but the length and magnitude of economic damage from elevated oil prices
1 April 2026
The US-Iran conflict demonstrates the need for diversification in several senses of the word. It also exposes the limits of Washington applying pressure on major oil and gas producers it considers geopolitical adversaries
31 March 2026
Disappointing results in its bidding round are a reality check for Libya, and global exploration generally
