The UK‘s largest oil and gas producer, Harbour Energy, has announced plans to cut around 100 offshore jobs as part of a new restructuring effort.
The decision comes after the company reduced its onshore workforce by about 600 roles since 2023.
Harbour Energy, which operates from Kingswells in Aberdeen, said the latest review was required to keep the business competitive and had been accelerated by the UK government’s decision to retain the windfall tax, formally known as the Energy Profits Levy (EPL).
A company spokesperson said the consultation process is now under way and is expected to result in a reduction of “approximately 100 offshore roles”. The firm said the move reflects expectations of lower production and reduced investment in the UK oil and gas sector in the coming years.
Harbour Energy has long criticised the EPL, first introduced by the Conservative government in 2022 and extended under Labour last year.
Scott Barr, managing director of Harbour Energy’s UK operations, 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 added that an “offshore reorganisation” was now unavoidable but stressed the company’s commitment to safety and regulatory compliance. “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.
Chancellor Rachel Reeves opted not to scrap the EPL in last week’s Budget. The levy, which applies to profits from extracting oil and gas in the UK, is scheduled to remain in place until 2030.
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.”
They added that the government had set out a plan for “a prosperous and sustainable future for the North Sea”, including investment in clean energy, support for existing oil and gas field management, and assistance for workers transitioning to new industries.
Russell Borthwick, chief executive of Aberdeen and Grampian Chamber of Commerce, said the government had been “warned time and again” that its approach to taxation would threaten employment in the energy sector. “Those warnings are becoming a reality,” he said.
