North Sea oil and gas industry offered ‘get-out’ clause on windfall tax

Bumper profits at BP and Shell recently have prompted calls for a tougher windfall tax. Photograph: Reuters

Jeremy Hunt has handed the North Sea oil and gas industry a “get-out” clause from the windfall tax on fossil fuel profits if wholesale energy market prices fall back to normal levels.

The Treasury set out the change before a meeting with oil companies including Equinor, BP, Shell and Total in Aberdeen on Friday afternoon, after months of warnings from the North Sea industry that the windfall tax would threaten investment and jobs.