Oil tax cloud over Enterprise bid

SHELL'S £3.5bn bid for Enterprise Oil could be endangered by the Chancellor's 10% oil tax, which could render the offer less profitable.

Enterprise Oil, Britain's biggest independent producer, pumps 250,000 barrels of oil a day from the North Sea and this will be subject to the 10% windfall tax, which could cost it £400,000 a day.

Shell may therefore revise its agreed bid. Today it said it was 'considering the consequences' of the new tax. Shell also said it was 'fully aware of UK Takeover Code requirements' that impose strict rules on revised bids.

The war premium on world crude oil prices is worth between $2 and $4 a barrel and is likely to leave the price per barrel at about $25 for some time. Brent crude, however, sells at a higher price because of its quality. Today it was up 33 cents at $25.71.