Oil and gas firm plans to cut 100 offshore jobs

Harbour Energy said offshore roles would be lost

The UK's largest oil and gas producer plans to cut about 100 offshore jobs, it has announced.

Harbour Energy has already reduced its onshore workforce by about 600 since 2023.

The company, which has a base in Kingswells, Aberdeen, said the latest review was needed to ensure it remained competitive and was accelerated by the UK government's retention of the windfall tax.

The UK government said it would do everything to support the workers and communities affected.

Harbour Energy said a reduction of "approximately 100 offshore roles" was expected following a consultation period, which is now under way.

It added the decision reflected lower anticipated production and investment in the UK sector.

The company has been a vocal critic of the Energy Profits Levy (EPL), known as the windfall tax, introduced by the Conservative UK government in 2022 and extended after Labour came to power last year.

Scott Barr, managing director of the firm'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."

Harbour Energy has a base in Kingswells

Mr Barr said an "offshore reorganisation" was a necessary step, while maintaining a commitment to safety and regulatory standards.

He added: "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 process began on Monday, and is expected to end in the first quarter of next year.

Chancellor Rachel Reeves made no move to scrap the EPL last week.

The levy applies to profits made from extracting UK oil and gas and is due to stay 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.

"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."

Aberdeen and Grampian Chamber of Commerce chief executive Russell Borthwick said the UK government had been "warned time and again" that taxation on the energy sector would put jobs at risk.

He added: "Those warnings are becoming a reality."