Harbour Energy is cutting 100 offshore jobs in the UK North Sea, marking the latest in a series of personnel reductions this year.

Rationale for Job Cuts

The company states the review is necessary to ensure its UK business remains competitive while adapting to a challenging future. Management cites sustained pressure on the UK oil and gas sector from lower commodity prices and an uncompetitive tax regime, specifically highlighting the government's recent decision to retain the Energy Profits Levy (EPL).

Impact of the Energy Profits Levy

The EPL, introduced in 2022 and now set to remain until 2030, is identified as a primary factor. Harbour Energy has already reduced its UK workforce by half since the levy's introduction and states its UK business will struggle to compete for investment within its global portfolio while the EPL is in place. The company is among several operators attributing scaled-back UK activity to the fiscal regime, despite industry pleas for its removal to protect the sector and dependent jobs.

Strategic Diversification and Support

In a strategic shift, Harbour Energy completed the acquisition of Wintershall Dea's upstream portfolio last year, allowing it to diversify its asset base away from the UK. The company acknowledges the difficulty of the job cuts for affected colleagues and commits to working closely with them to provide support throughout the process.