Harbour Energy, the largest oil and gas producer in the UK, has announced plans to reduce its offshore workforce by approximately 100 positions. This decision follows a significant reduction of about 600 jobs in its onshore workforce since 2023. The company, which is headquartered in Kingswells, Aberdeen, stated that the job cuts are part of a review aimed at maintaining competitiveness, especially in light of the UK government’s retention of the windfall tax.
The consultation period for the offshore roles has commenced and is expected to conclude by the first quarter of next year. Harbour Energy indicated that the cuts are driven by lower anticipated production levels and investment in the UK sector. The company has consistently criticized the Energy Profits Levy (EPL), introduced by the Conservative government in 2022 and extended by the current Labour government, citing it as a factor contributing to its challenges.
Scott Barr, managing director of Harbour Energy’s UK operations, explained that the ongoing review is essential for the company’s long-term competitiveness amidst pressures such as lower commodity prices and an uncompetitive tax environment. He acknowledged the difficulties that affected employees might face during this transition and affirmed the company’s commitment to supporting these individuals throughout the process.
In response to these developments, the UK government expressed concern for the workers affected by this decision and committed to providing support. The government’s spokesperson also pointed to ongoing efforts to develop a sustainable future for the North Sea, which includes investment in clean energy and support for existing oil and gas operations. Concurrently, local business leaders highlighted the risks posed to employment in the energy sector due to taxation policies, noting that such warnings are increasingly being realized.
Source: https://www.bbc.com/news/articles/c1dz4d64qqpo?at_medium=RSS&at_campaign=rss