Eni (NYSE:E) plans to spend at least €2.5B in the U.K. over the next four years, as the U.K. government demands oil and gas companies significantly boost investment in the country's energy system or potentially face a windfall profits tax, Financial Times reported on Sunday.
The Italian company said it will spend 80% on carbon capture and renewable energy projects, and the remaining 20% on oil and gas production, according to the report.
"We believe that it would be best to ensure energy companies speed up investments in the energy transition rather than imposing a windfall tax which might have the effect of slowing down future investments," Eni (E) reportedly said.
Eni's plan follows new spending commitments by rivals, including Harbour Energy (OTCPK:PMOIF) - forecast to be the largest oil and gas producer in the North Sea this year - which told the U.K. government this week that it planned to invest £6B in further upstream activity in the next three years, FT reported.
Shell has said it will invest £20B-£25B in the U.K. energy system over the next decade, while BP has pledged to spend £18B by the end of 2030.