Centrica could move rigs to avoid UK windfall tax

British gas owner Centrica is reportedly considering moving some of its gas exploration rigs into Norwegian and Dutch parts of the North Sea to avoid George Osborne's windfall tax.

Although the tax rate in those countries is even higher than the new rate for companies operating in UK waters set in last month's Budget, some of their gas fields are more accessible and may now offer a more attractive overall investment.

Yesterday, a spokeswoman for Centrica refused to confirm or deny that it was considering moving a number of rigs, saying that the company was "still reviewing" the implications of the Budget, and had raised its concerns with the UK government.

Oil & Gas UK, the trade association representing the offshore sector, said the new tax could cost the industry 50 billion over the next ten years and jeopardise tens of thousands of jobs.

A string of firms, including the Norwegian giant Statoil and Valiant Petroleum, have cancelled or delayed plans for North Sea exploration following the Chancellor's announcement in last month's Budget.

The Treasury plans to raise 2bn a year to pay for a fuel duty freeze by adding an extra 12 per cent to profits made from oil and gas in UK waters, as long as the price of oil remains above $75 a barrel.

The government has said it may review that threshold, as companies threaten to withdraw from the UK continental shelf.

Before the Budget, Centrica had plans to invest 700 million in its Aberdeen-based upstream arm.