Windfall Oil Tax Bites As Total Energies Has Halted Production At The Gryphon Terminal In The North Sea

7th January 2025

The French energy giant Total Energies has shut down a key North Sea hub amid growing concerns over the Government's windfall tax. Total Energies halted production at the Gryphon terminal, which is responsible for providing around 2pc of Britain's oil and gas supplies, on New Year's Day.

The move will jeopardise output from five North Sea fields that rely on the Gryphon for processing, meaning an estimated 9m barrels of oil will remain untapped in the ageing basin. The Treasury is also expected to miss out on £150m worth of tax receipts as a result of the shutdown.

The decision was opposed by Nobel Upstream, which owns stakes in two fields tied back to the vessel. Nobel Upstream has for years aid hey could make further investment in to new fields but were frustrated by UK government policies. They will now move investments to other places in the world.

Meanwhile Wind turbines have overtaken gas as Britain's biggest source of electricity as the Government pushes ahead with plans to make the nation more reliant on renewable energy. Wind accounted for 29pc of the UK’s electricity last year, while gas tumbled to around a quarter. In the previous year, 2023, gas represented 32pc of the UK’s generation mix.