Harbour Energy Announces 100 Job Cuts Amid Industry Challenges

Harbour Energy, the largest independent oil and gas company operating in the North Sea, has revealed plans to eliminate approximately 100 offshore jobs as part of a review of its UK operations. This decision comes as the company seeks to navigate a challenging market environment, exacerbated by the UK Government’s retention of the Energy Profits Levy, often referred to as a windfall tax.

According to the company, the job cuts are necessary to ensure competitiveness within a sector facing ongoing pressure from declining commodity prices and an uncompetitive tax regime. The latest announcement follows a significant reduction in workforce numbers, with Harbour Energy reportedly cutting about half of its staff since the introduction of the windfall tax in 2022. The company has reduced its onshore headcount by around 600 employees since the beginning of 2023, which includes the loss of 250 onshore jobs earlier this year.

Impacts of the Energy Profits Levy

Scott Barr, managing director of Harbour’s UK business unit, expressed disappointment over the lack of reforms to the windfall tax in the recent UK budget. He stated, “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.”

As part of the new review of its offshore operations, the company has confirmed that around 100 offshore jobs from a total of approximately 700 are at risk. The reorganisation aims to align the operational model with the reduced activity and production levels in the UK, which have been accelerated by the ongoing impact of the levy.

Barr emphasized the necessity of this restructuring, noting, “The future structure of our offshore workforce must adapt to reflect these realities.” He also acknowledged the challenges that employees will face in the coming months, stating, “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.”

Consultation Process and Timeline

The company anticipates that the job cuts will occur following a consultation period set to begin on December 1, 2025. This process is expected to conclude before March 2026. Harbour Energy’s commitment to safety and regulatory standards will remain a priority throughout this transition.

As the oil and gas industry continues to grapple with economic challenges, Harbour Energy’s restructuring reflects broader trends impacting the sector. The decisions made in the coming months will be closely watched by stakeholders, as the company aims to position itself for future growth while managing current pressures.