Harbour Energy, a North Sea-focused producer, said on Monday it expected to cut 100 offshore jobs as part of an organisational review of its UK business.
Lower commodity prices and an uncompetitive tax regime have pressured the UK oil and gas sector, leading to Harbour's offshore reorganisation, said Scott Barr, managing director of Harbour's UK business unit.
The job cuts will follow a consultation period, due to conclude in the first quarter of 2026.
Since 2023, Harbour has cut 600 jobs. The job losses announced on Monday will come on top of that.
Britain's government presented its budget on Wednesday and announced no changes to one of the world's toughest tax regimes for oil and gas producers, which includes a windfall levy of 38% when prices exceed government-set thresholds, bringing the overall tax burden in such circumstances to 78%.
Industry had hoped for an early end to this Energy Profits Levy (EPL), which is due to expire in March 2030.
“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 EPL, while maintaining our commitment to safety and regulatory standards," Barr said. “Harbour’s UK Business Unit will continue to struggle to compete for capital within our global portfolio while the EPL remains."
Britain will allow some new oil and gas production on or near existing fields, the government said on Wednesday, easing its stance on new licences.
(Reuters - Reporting by Stephanie KellyEditing by Bernadette Baum, Kirsten Donovan)