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Small cap oil and gas firms tank on Labour's North Sea plans

Published 13/06/2024, 15:40
© Reuters.  Small cap oil and gas firms tank on Labour's North Sea plans
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Proactive Investors - 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 (LON:SQZ) dropped 9.5%, Deltic Energy PLC (LON:DELT) fell 18%, Jersey Oil and Gas PLC (LON:JOG) tumbled 19.5% and Ithaca Energy PLC (LON:ITH) slipped 3%.

Cleantech companies also traded lower at the prospect of new competition, with the likes of Inspirit Energy Holdings PLC (LSE:INSP) 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 (LON:SHEL) and BP (LON:BP) both held flat in reaction.

Read more on Proactive Investors UK

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