Exxon Sues EU in Move to Block New Windfall Tax on Oil Companies

© Askar / Adobe Stock
© Askar / Adobe Stock

U.S. oil major Exxon Mobil Corp is suing the European Union in a bid to force it to scrap the bloc's new windfall tax on oil groups, arguing Brussels exceeded its legal authority by imposing the levy.

The windfall profits tax is "counter-productive", discourages investments and undermines investor confidence, Exxon spokesperson Casey Norton said on Wednesday. Exxon will factor in the tax as it considers future multi-billion euro investments in Europe’s energy supply and transition, he said.

"Whether we invest here primarily depends on how attractive and globally competitive Europe will be," Norton said.

The Financial Times firstreportedthe lawsuit on Wednesday.

Windfall profit taxes imposed by Europe could cost at least $2 billion through the end of 2023, Chief Financial Officer Kathryn Mikells said in a call to analysts on Dec. 8.

Exxon said it invested $3 billion in the past decade in refinery projects in Europe. The projects are helping it deliver more energy products at a time when Europe struggles to reduce its imports from Russia.

"We will continue to work with EU leaders to address these issues. Thoughtful policy is critical," the company said.


(Reuters - Reporting by Sabrina Valle, additional reporting by Arunima Kumar; Editing by Anil D'Silva and Chizu Nomiyama)

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