Then Chancellor Rishi Sunak said the money raised would support households facing rising energy bills.

Initially set at 25% and due to expire in 2025, the Conservatives later raised it to 35% and said it would last until March 2029.

In the recent Budget, Labour raised the levy to 38% – meaning the total tax rate on the companies is now 78% – and extended it by a further year.

An Apache spokesperson said: “The onerous financial impact of the EPL, combined with the substantial investment that will be necessary to comply with regulatory requirements, makes production of hydrocarbons beyond 2029 uneconomic.

“Looking forward, our focus will be on maintaining asset safety and integrity as we prepare for the responsible decommissioning of our assets.”