Harbour Energy plans to cut around 100 North Sea jobs

Harbour Energy has announced plans to cut around 100 offshore jobs from the North Sea, as part of a review of its UK operations.

The firm say the move is necessary to remain "competitive" as they continue "to adapt to a challenging future."

They have also cited the Energy Profits Levy (EPL), known as the windfall tax, in a statement about their proposals.

North East politicians have criticised the windfall tax, but the UK Government say this follows restructuring and job losses announced by Harbour Energy under the previous government.

Harbour Energy’s statement

Scott Barr, UK Business Unit Managing Director, said the reorganisation is essential in adapting to a difficult operating environment.

He 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.

“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 EPL, while maintaining our commitment to safety and regulatory standards."

Barr added that the company’s UK operations will remain under pressure due to the EPL, making it difficult to attract capital.

“The future structure of our offshore workforce must adapt to reflect these realities," Barr said.

“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.”

Previous workforce reductions

Since 2023, Harbour Energy has already reduced its onshore headcount by approximately 600.

The loss of 250 onshore jobs was announced earlier this year, after 350 were cut two years ago.

SNP Westminster leader and Aberdeen South MP Stephen Flynn is one of those blaming the windfall tax.

He said: "My thoughts are very much with the hundred individuals, their families and friends who now face a deeply uncertain future. 

"This tax needs to be replaced, we need to have an honest and clear apology from the Labour party for the damage they have caused.

"We need to back our home grown domestic industry and its workforce to get on and deliver for our economy, for our energy security and indeed to deliver the transition which right now, seems really far away."

Conservative MP for West Aberdeenshire and Kincardine and Shadow Energy Security minister, Andrew Bowie, also criticised the Labour government.

He said: "This is appalling news for hard-working families ahead of Christmas.

"It would be bad enough if this was an isolated incident.

"But this is happening week after week as the sector grapples with the Labour government’s war on oil and gas.

"The 2030 extension to the EPL is directly responsible for the Harbour announcement today.

"No further evidence is needed. The EPL has not just overstayed its welcome in the North Sea.

"It is choking the life out of it.

"Labour haven’t brought down bills. They haven’t brought jobs to Aberdeen. They won’t even make much money from supertaxes on the North Sea.

"They’ve only caused a wave of redundancies in the North East.

"It is time for Keir Starmer and Ed Miliband to make a u-turn on this anti-growth, anti-energy security policy which is wrecking the North Sea."

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."