Harbour Energy has confirmed plans to cut around 100 offshore roles as part of an ongoing review of its UK operations.
The company – which has already reduced its onshore headcount by about 600 since 2023 and operates a major base in Kingswells – said the latest move is designed to keep the business competitive, with the process “accelerated by the UK government’s retention of the windfall tax.”
The expected reduction follows a consultation period now under way and reflects “lower anticipated production and investment in the UK sector,” the firm said.
Harbour has been an outspoken critic of the Energy Profits Levy (EPL), introduced in 2022 and subsequently extended until 2030.
'Uncompetitive tax regime'
Scott Barr, managing director of Harbour’s UK business, said: “This review is necessary to ensure Harbour Energy's UK business remains competitive as we continue to adapt to a challenging future.
“The UK oil and gas sector faces sustained pressure from lower commodity prices and an uncompetitive tax regime, worsened by the government's decision to retain the Energy Profits Levy in the recent Budget.”
He described an “offshore reorganisation” as a necessary step, adding: “While we must deliver this essential change, we recognise the next few months will be difficult for colleagues. We will work closely with those most affected and provide support throughout the process.”
The consultation began on Monday and is expected to conclude in the first quarter of next year.
Reaction
Russell Borthwick, Chief Executive at Aberdeen & Grampian Chamber of Commerce, said: "The UK Government - by its own admission last week - is now taxing North Sea windfalls which no longer exist.
"The new tax regime which will replace the Energy Profits Levy defines 'windfall prices' as being $97 and above. The oil price hasn't reached that level for three years, since October 2022, and sits at $62 today.
"That is why the EPL is so corrosive and must be replaced immediately before it unleashes economic harm on a scale not seen since the 1980s
"The UK Government has been warned time and again — by trade unions, charities, academics and industry leaders — that its tax raid on the energy sector is putting jobs at risk.
"Those warnings are becoming a reality — that's now 700 jobs cut at Harbour Energy alone, plus 400 at Grangemouth, 400 at Mossmoran and thousands more in the wider supply chain.
"As a bare minimum, the UK Government must move put in place its own proposed successor to the windfall tax now, not in four years, to avoid today's announcement becoming the first of many.”
A UK Government spokesperson said: “Our thoughts are with any workers affected by this commercial decision, and we will do everything in our power to support workers and communities.
“This follows restructuring and job losses announced by this company under the previous government.
“This government has set out a plan to build a prosperous and sustainable future for the North Sea, backed by record investment to grow clean energy industries, support the management of existing oil and gas fields for their lifespan, and help North Sea workers make the transition.”