Britain’s biggest oil and gas operator has announced plans to cut around 100 jobs from its North Sea offshore workforce.
The company says the government’s windfall tax on energy firms is the reason for the decision.
Harbour Energy revealed the planned job cuts during a review of its UK operations, saying the windfall tax is making it harder for the business to stay competitive.
The company added that the government’s decision to keep the tax in last week’s Budget has made the situation even more difficult for its British operations.
These latest reductions form part of broader workforce adjustments that the firm has implemented across its British operations.
The firm has now eliminated approximately 700 positions across its operations since the windfall tax came into effect in 2022.
Earlier this year, the company reduced its onshore workforce in Scotland by roughly 250 employees.
North Sea oil giant to axe 100 offshore jobs
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PAThe energy profits levy, initially implemented by the Conservative administration and subsequently prolonged by the current Labour government, requires operators to surrender approximately 78 per cent of their profits to the Treasury.
The tax is anticipated to remain in effect until 2030, continuing to impact the sector’s profitability and operational decisions.
The company has identified declining commodity values alongside what it describes as an “uncompetitive tax regime” as key factors driving the workforce reduction.
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Managing director Scott Barr stated: “The offshore reorganisation is a necessary step to align our operating model with reduced activity and production levels in the UK, accelerated by the retention of the energy profits levy (EPL), while maintaining our commitment to safety and regulatory standards.”
He added: “Harbour’s UK business unit will continue to struggle to compete for capital within our global portfolio while the EPL remains.”
The workforce restructuring will proceed through a formal consultation process, with completion anticipated during the first quarter of 2026.
The managing director emphasised that the reorganisation aims to ensure the UK business remains competitive
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GETTYScott Barr acknowledged the human impact of the changes, stating: “The future structure of our offshore workforce must adapt to reflect these realities.”
He recognised the challenges facing employees during the transition period: “While we must deliver this essential change, we recognise the next few months will be difficult for colleagues.”
The managing director emphasised that the reorganisation aims to ensure the UK business “remains competitive as we continue to adapt to a challenging future” whilst maintaining safety and regulatory standards throughout the process.