Harbour Energy slashes 100 offshore jobs due to windfall tax

HARBOUR ENERGY, the UK’s largest independent oil and gas producer, says it will cut around 100 roles from its workforce following the government’s decision to retain the Energy Profits Levy (EPL) until March 2030.

The windfall tax, introduced in 2022 to capture excess profits from high energy prices, was expected to expire earlier but was extended in last week’s Budget despite strong industry opposition.

Scott Barr, managing director for Harbour Energy’s UK business, said: “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.”

"Corrosive" tax system

Industry groups argue that oil and gas prices have fallen significantly from their 2022 highs – when crude briefly exceeded US$100/bbl following Russia’s invasion of Ukraine – and now average around US$70/bbl. They say the tax is no longer justified and risks accelerating North Sea production decline.

David Whitehouse, CEO of Offshore Energies UK, said: “Reforming the Energy Profits Levy will also support the UK’s wider energy future by sustaining the supply chain and industrial capabilities needed for offshore wind, carbon storage and hydrogen projects.”

Tax impact

Harbour has already cut around 600 UK jobs since 2023, part of a wider trend of workforce reductions across the sector.

Russell Borthwick, CEO of Aberdeen & Grampian Chamber of Commerce, said: “The UK government has been warned time and again – by trade unions, charities, academics and industry leaders – that its tax raid on the energy sector is putting jobs at risk.

"Those warnings are becoming a reality – that’s now 700 jobs cut at Harbour Energy alone, plus 400 at Grangemouth, 400 at Mossmoran and thousands more in the wider supply chain.”

Harbour said the job cuts were a “necessary step” and will be working with its affected employees throughout the restructuring process.

The process is expected to conclude in Q1 2026.