ENQUEST has warned the government the current fiscal regime is damaging confidence in the North Sea, and has called for further changes to the windfall tax to encourage investment.

The oil and gas producer has blamed the windfall tax for a swing from profits to losses, and fears the levy is jeopardising the UK's investment conditions.

Enquest boss Amjad Bseisu said: "The UK's oil and gas sector faces significant challenges and loss of competitiveness due to uncertainty following the adverse changes to the fiscal regime.

"While we appreciate the government's intentions to improve the attractiveness of the sector through the Energy Security Investment

Mechanism, we believe timely legislative reform is required to restore confidence in the UK oil and gas sector to protect jobs and deliver both energy security and decarbonisation."

The comments came after the group posted a reported loss after tax of $21.2m (£16.9m) in its half-year results, in comparison to profits of $203.5m just 12 months prior.

Shares fell 12 per cent yesterday.

(c) 2023 City A.M., source Newspaper