BP HAS paid tax on its operations in the North Sea for the first time in at least six years, according to a company report.
The energy giant paid a total of $127.3 million to the UK HM Revenue and Customs, Crown Estate and Oil and Gas Authority for 2021, whereas for 2020, the company received a tax refund of $42 million.
However, these figures – which are drawn from the Reports on Payments to Government regulations, which require oil, gas and mining companies incorporated in the UK to annual disclose what payments they have made to countries relative to extractive industries – only cover BP’s North Sea operations.
READ MORE: BP profits explained and where that money goes
BP, like many oil and gas producers in the UK, receives rebates for dismantling oil platforms, and often does not pay tax due to losses connected to investments in North Sea fields.
In consequence of this, recent years have often seen these companies receiving more money from the Government than vice-versa.
Due to the UK’s low oil tax rates, a 2021 analysis by Rystad Energy concluded that the UK is now the profitable country in the world for oil and gas “mega-projects.”
Last year, controversy grew over BP and Shell collectively paying no corporation tax or production levies on North Sea oil operations between 2018 and 2020, while at the same time claiming tax reliefs of almost £400 million, with Greenpeace UK campaigner Philip Evans arguing: “We’re giving tax breaks worth billions of pounds to companies that have been fuelling the climate emergency for decades.”
The news follows last month’s announcement of a windfall tax on oil and gas firms making huge profits during the ongoing energy crisis, which has faced resistance from several major energy companies.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel