Oil and gas producer Harbour Energy is set to cut 250 jobs, approximately 25% of the workforce at its UK unit based in Aberdeen, the company said in a statement on Wednesday.
Harbour, the largest British North Sea oil and gas producer, said the cuts were necessary because of lower investment as a result of the UK government's policies towards the North Sea fossil fuel industry.
“The review is unfortunately necessary to align staffing levels with lower levels of investment, due mainly to the Government’s ongoing punitive fiscal position and a challenging regulatory environment," said Scott Barr, managing director of the firm's UK business.
Harbour, which turned a £93 million loss in 2024 from a net profit of £45 million in 2023, has previously urged the UK government to reform its windfall tax before current levies run out in 2030.
The UK government reformed the Energy Profits Levy (EPL) to "support investment and give industry certainty and stability," a 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," the spokesperson said.
Harbour is also reviewing the resources required for its Viking carbon capture and storage project, Barr said, adding that progress has been hindered by delays to the government's Track 2 process.
"We must take these difficult steps in response to the challenges presented by the current external environment," Barr said.
(Reuters - Reporting by Robert HarveyEditing by Tomasz Janowski)