Windfall tax will stifle investment, say small oil firms

North Sea oil and service companies are to meet Treasury officials today amid mounting fears that a windfall tax will be imposed by the chancellor as he seeks to balance the books.

Abbot Group, Tullow Oil, Dana Petroleum and others will argue at the summit that heavier taxation would damage an already fragile sector that is in need of help.

The smaller and medium-sized firms are worried that the bigger hitters – BP and Shell, along with the UK Offshore Oil Industry Association – have presented too rosy a picture of the oil sector’s fortunes.

The Guardian