LONDON: Jersey Oil & Gas plc (JOG), an independent oil and gas company operating in the North Sea, announced its unaudited interim results for the first six months of 2025, highlighting a significant reduction in its operational costs and continued progress on its flagship Buchan redevelopment project.
The company stated it has halved its annualized running costs to an expected £1.5 million while maintaining a solid cash position of £11.3 million as of the end of June. This strategic financial positioning comes amid what CEO Andrew Benitz described as a “challenging backdrop” created by the UK’s 78% Energy Profits Levy (EPL) tax rate.
JOG is pressing ahead with its Buchan Horst (“Buchan”) project, a key focus for the company. The Buchan P2498 license was extended by 24 months to February 2027, giving the company and its joint venture partners more time to finalize the project’s Field Development Plan. JOG is currently working on an addendum to the Buchan Environmental Impact Assessment to include Scope 3 emissions, in line with new guidance from the Offshore Petroleum Regulator for the Environment and Decommissioning.
Technical and commercial workstreams are also moving forward, including subsurface modeling and finalizing the drilling plan. The company also reached an agreement on commercial terms for using gas export infrastructure.
Benitz urged the UK government to complete its consultation on the future fiscal regime and remove the EPL, arguing it has “unnecessarily damaged” the industry. He said the Buchan project holds the potential to unlock “significant UK investment, create over 1,000 well paid jobs and ultimately realise hundreds of millions in future tax payments to the exchequer.”
JOG’s plan to acquire the “Western Isles” floating production, storage and offloading (FPSO) vessel was terminated by Dana Petroleum in March. However, JOG noted that re-contracting the vessel remains a possibility in the future, with NEO NEXT Energy remaining a 23% owner.