MADRID, Oct 26 Reuters Oil major Repsol said on Thursday Spain39;s potential extension of a windfall tax on large energy companies, which was included in a coalition deal between centreleft parties seeking to form a government, could hamper its projects in the country.

The Socialist Party of acting Prime Minister Pedro Sanchez and the hardleft Sumar on Tuesday agreed policies that included expanding windfall taxes for banks and energy firms that have so far this year generated 2.9 billion euros 3.06 billion in revenues for the treasury.

The possibility of maintaining a tax on energy companies, which was designed to be temporary and extraordinary, punishes companies such as Repsol that invest in industrial assets, generate employment and guarantee the country39;s energy independence, Repsol said in a statement as it posted its thirdquarter results.

The company said that extending the levy would instead favour importers, who don39;t generate employment or relevant economic activity, with the resulting lack of stability in Spain39;s regulatory and fiscal framework potentially threatening Repsol39;s future industrial projects in the country.

In December last year, the Spanish government imposed a twoyear, 1.2 levy for energy companies with a turnover of at least 1 billion euros.

The Socialists and Sumar, which currently run Spain39;s caretaker government, agreed all companies would be taxed an effective 15 rate on their accounting profit, Sumar leader Yolanda Diaz said…