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Harbour Energy to eliminate 100 offshore positions following continuation of Windfall tax

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Harbour Energy to eliminate 100 offshore positions following continuation of Windfall tax
Harbour Energy to eliminate 100 offshore positions following continuation of Windfall tax

Last week, Harbour Energy said it was “disappointed with the outcome” after there was no reform to the windfall tax in the UK budget.

Now, on Monday, the firm announced the latest round of job cuts as part of a new review of its UK offshore operations.

It confirmed that around 100 offshore jobs out of around 700 are at risk as part of this review.

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.

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Harbour Energy announced the job cuts as part of a review of its UK offshore organisation.

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

The consultation period will begin on Monday, December 1, 2025 and is expected to conclude before March 2026.

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

Scott Barr, managing director of Harbour’s UK business unit, 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.

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“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.

“Harbour’s UK Business Unit will continue to struggle to compete for capital within our global portfolio while the EPL remains.

“The future structure of our offshore workforce must adapt to reflect these realities.

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“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.”

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."

Sophie Walker

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