LONDON, March 6 (Reuters) - British finance minister

Jeremy Hunt said on Wednesday he would extend by one year a

windfall levy on North Sea oil and gas firms' profits.

The Energy Profit Levy (EPL) was introduced in May 2022

after a jump in energy prices resulting from Russia's full-scale

invasion of Ukraine.

Presenting Britain's budget in parliament, Hunt said the

one-year extension to 2029 - forecast to raise 1.5 billion

pounds ($1.91 billion) - was due to expectations that energy

prices will remain higher for longer.

Hunt increased the tax in November 2022 from its initial 25%

rate to 35%, bringing the overall tax burden on North Sea oil

and gas producers to 75%, among the highest in the world. He

also extended the tax until 2028 rather than 2025.

The tax rate itself, as well as a 29% investment allowance

in the windfall tax that allows companies to offset spending,

will remain unchanged, he said.

Reuters reported on the planned extension on Monday.

After reaching a record high in early 2022, benchmark

British gas prices are today back at pre-crisis

level. Oil prices are also at pre-invasion levels.

David Whitehouse, chief executive of industry body Offshore

Energies UK said the windfall tax was "a disappointing blow to

the industry which risks jobs, investment and economic growth."

"The industry is being taxed on windfall profits which no

longer exist and facing a fourth round of fiscal change and

turmoil in less than two years, making it impossible to plan

investment for the energy transition and the path to net zero"

carbon emissions," Whitehouse said in a statement.

($1 = 0.7861 pounds)