Apache suspends North Sea drilling, cites taxes

US independent producer Apache will halt drilling in the North Sea, citing the UK's "increasingly costly and burdensome tax and regulatory regime."

"We can confirm the suspension of all platform drilling in the North Sea," Apache said. "Given the business climate for the oil and gas industry in the UK, these assets have become less competitive in comparison to the rest of our portfolio."

The announcement came on the same day the UK government said a price-floor mechanism for its Energy Profits Levy on oil company profits lose the 35pc windfall tax if lower prices for oil and gas persist for two consecutive quarters.

Apache will cut jobs, but did not specify how many.

By Stephen Cunningham