BP has revealed that its chief executive, Bernard Looney, earned £4.5 million total remuneration as calls for a windfall tax on oil and gas firms intensify.

The company’s annual report shows Mr Looney earned bonuses and share awards worth around £3m last year on top of his annual salary of £1.3m.

The report covers a year during which BP’s profits hit an eight year high of $12.8 billion (£9.5bn) following the surge in oil and gas prices fuelled by the recovery in global economic activity from the pandemic.

Prices have risen further following Russia’s invasion of Ukraine.

The Herald: BP developed the huge Clair Ridge field off Shetland with Shell Picture: BPBP developed the huge Clair Ridge field off Shetland with Shell Picture: BP

Millions of consumers in the UK are facing steep increases in their energy bills after the regulator lifted the cap on prices to help energy suppliers cover their costs. Chancellor Rishi Sunak has come under pressure to impose a windfall tax on firms operating in the North Sea to generate revenues that could be used to help householders.

READ MORE: North Sea firms to make huge payouts to investors after achieving bumper profits amid gas price rise

Industry leaders insist such a tax would deter firms from making the investment that is needed in the North Sea if the UK is to reduce its reliance on imports.

Mr Looney told analysts last month: “If anything the UK needs more gas right now, not less, and that’s going to require more investment, ... and a windfall tax probably isn’t going to incentivise that investment.”

READ MORE: Fresh North Sea gas field start up boosts supplies amid fallout from Ukraine war

Shell chief executive Ben van Beurden told journalists last month that windfall tax might be popular but will not deal with the supply and demand issues that are driving price rises. His total remuneration rose to €7.4m (£6.3m) last year, from €5.8m in the preceding year.

Shell has launched a fresh bid to get regulatory approval for a plan to develop the giant Jackdaw gas field in the North Sea after suffering a setback with an application last year, Reuters reported.

It reckons Jacdaw could supply around six per cent of Britain's gas output.

The Herald: Shell chief executive Ben van Beurden Picture: ShellShell chief executive Ben van Beurden Picture: Shell

Since becoming chief executive of BP in February 2020, Mr Looney has set out to transform the group into a braoad-based energy business. He has said the company will use the profits made on oil and gas activity to fund investment in renewables and payouts to investors.

Mr Looney earned £1.7m total remuneration in the 11 months he spent on the company’s board in 2020. BP lost $5.7bn that year amid the fallout from the pandemic.

Mr Looney was paid £0.2m in lieu of retirement benefits in 2021.