RWE keen on North Sea despite tax hike

June 22, 2011 at 6:28 AM
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LONDON, June 22 (UPI) -- Germany energy company RWE Dea said it was investing in two natural gas fields in the North Sea even though London increased taxes for production there.

The British government early this year raised taxes on profits from oil and gas production by 12 percent to 32 percent. Officials at the Germany energy company said the increase wasn't helpful but plans were still in place to develop the Breagh and Clipper South gas fields in the North Sea, the Platts news service reports.

RWE Dea Chief Executive Officer Thomas Rappuhn said investments would continue despite the tax hike.

"The projects will be done and are still economic despite the fact that they have become less favorable," he was quoted as saying.

The Breagh field, the larger of the two and one of the largest undeveloped fields in the British waters of the North Sea, holds more than 450 billion cubic feet of natural gas. First gas from the North Sea field is expected by next year.

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