LONDON, April 18 The head of U.S. energy
major Chevron on Monday criticised Britain's tax
increase on North Sea oil and gas production, saying the
decision could have "unintended consequences."
"When you increase taxes every few years, particularly
without consulting with industry, there will be unintended
consequences of that in terms of where we choose to invest,"
chairman and chief executive John Watson said in an interview
with the Financial Times.
Britain last month announced a surprise tax increase on oil
and gas production in the North Sea, raising the tax to 32
percent from 20 percent. [ID:nLDE72M1PB]
The government has defended its decision, saying it expects
higher oil prices to help the investment outlook.
Watson said the move was "very disappointing" and made
Britain "one of the more unstable investment climates for our
"My biggest concern is not just the level of tax, it's the
stability and the predictability of the tax."
(Reporting by Karolina Tagaris; Editing by Dhara Ranasinghe)