North Sea oil giant Harbour Energy stays in Vietnam

The biggest oil producer in the North Sea has ditched plans to sell its Vietnamese arm to a local company for £65million.

Harbour Energy announced the deal with Vietnamese group Big Energy last year and expected to complete it by this summer.

But the FTSE 250-listed group has pulled out and The Mail on Sunday understands it is seeking a higher price.

Harbour is keen to quit Vietnam and boss Linda Cook last year said it would like to focus on other countries. It also works in Norway, Indonesia and Mexico.

It is the biggest oil and gas producer in the North Sea, but it began pinning its hopes on overseas projects after the last government imposed a windfall tax on UK energy company profits.

The levy was brought in after Russia’s invasion of Ukraine sent oil and gas prices soaring, hitting households with higher bills.

Labour said in its manifesto it would bring in a further crackdown on North Sea producers by raising the total tax burden from 75 to 78 per cent and removing investment allowances.

Last year Harbour saw the bulk of its profit wiped out by taxes.

On the Vietnam deal, in a prospectus for investors, Harbour said it ‘exercised its right to terminate’ the initial sale deal on May 13, adding: ‘Harbour intends to reassess its options with regards to realising the best value from its Vietnam business.’

Read the latest issue of the OGV Energy magazine HERE