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Harbour Energy says it is being hit by an ‘uncompetitive tax regime’
Henry Saker-ClarkTuesday 02 December 2025 10:34 GMT
CloseBudget 2022: Chancellor increases energy windfall tax to raise extra £14bn
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Harbour Energy, the UK's largest oil and gas producer, has announced plans to cut about 100 offshore North Sea jobs, citing pressure from the UK's windfall tax regime.
The proposed redundancies form part of a review into the company's UK operations.
Managing director Scott Barr said the process is necessary to ensure Harbour’s UK business “remains competitive as we continue to adapt to a challenging future”.
The firm highlighted ongoing pressure from lower commodity prices and what it described as an “uncompetitive tax regime”.
It added that the situation had been exacerbated by the Government's decision to retain the energy profits levy in last week's Budget.
The latest cuts mean that Harbour will have axed about 700 jobs since the tax was introduced in 2022.
An oil rig in the North Sea (PA Wire)That includes around 250 onshore job losses in Scotland earlier in 2025.
The windfall tax was brought in by the previous Conservative government and then extended after Labour came to power in 2024.
The levy, which is expected to stay in place until 2030, means that operators hand around 78 per cent of their profits to the Treasury.
Harbour said the job losses will follow a consultation period, which is likely to conclude in the first quarter of 2026.
“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 energy profits levy (EPL), while maintaining our commitment to safety and regulatory standards,” Mr Barr said.
“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.
“While we must deliver this essential change, we recognise the next few months will be difficult for colleagues.”
