Harbour Energy to Cut 250 Jobs in Aberdeen Amidst Challenging Regulatory Environment
North Sea operator Harbour Energy has confirmed that it will be cutting 250 jobs from its headquarters in Aberdeen. The decision comes as a result of the UK government’s “ongoing punitive fiscal position and a challenging regulatory environment,” according to Harbour Energy UK managing director Scott Barr.
In a statement, Barr said that the firm is launching a review of its North Sea operations, which is expected to lead to the loss of 250 onshore roles in Aberdeen. “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,” he said. Harbour remains one of the largest producers in the UK North Sea, and while its dedicated and highly skilled people will continue to produce vital energy safely and responsibly, we must take these difficult steps in response to the challenges presented by the current external environment.
The cut makes up around a quarter of Harbour’s staff pool, which stands at 1,000 people. This is not the first time Harbour has had to make redundancies, with the company cutting 350 onshore jobs from its Aberdeen office nearly two years ago, from a baseline of around 1,200. Barr also highlighted the ongoing uncertainty around UK government support for its Viking carbon capture and storage (CCS) project in the Humber. The Viking project is part of the government’s Track-2 CCS process, alongside the Acorn project in Scotland, in which Harbour also has a stake.
As reported by Energy Voice, Harbour Energy’s decision to cut jobs has been met with criticism from politicians. The SNP’s Westminster leader and MP for Aberdeen South, Stephen Flynn, invited Prime Minister Keir Starmer to Aberdeen to see the impact of job cuts caused by political policy on the region. Flynn said that it was “willing to move heaven and earth to save jobs in Scunthorpe while destroying jobs in Scotland.” He was referring to the government’s recent move to nationalize British Steel in Scunthorpe.
Acting shadow energy secretary and Conservative Aberdeenshire and Kincardine MP Andrew Bowie said that the Harbour announcement “is the latest in a long line of redundancy measures announced by Scottish and international firms, with each one pointing to the windfall tax and policy uncertainty.” Bowie was a member of the Conservative government when it introduced the windfall tax in 2022, and was a junior energy minister when the EPL was extended in 2024.
In response to the Harbour Energy announcement, a UK 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 government has reformed the Energy Profits Levy to support investment and give industry certainty and stability. By making the UK a clean energy superpower, including launching a world-leading carbon capture and storage industry after years of delay, consenting record amounts of clean power, and ending many years of no new nuclear, we will get the UK off dependence on markets controlled by petrostates and dictators, and drive jobs and growth through our Plan for Change.”
Harbour Energy’s North Sea operations have been impacted by the windfall tax on North Sea oil and gas firms, which was introduced by the previous Conservative government and has since been increased and extended by the Labour party. The company has reported around $6 billion in revenues in 2024, alongside $4 billion in earnings before interest, depreciation, amortization, and exploration (EBITDAX). However, Harbour has overseen “materially reduced capital investment in the UK” due to the windfall tax.
The company has been a vocal opponent of the EPL, with Harbour claiming it paid 108% tax in the UK last year as a result of the fiscal regime. Harbour is among a number of North Sea operators to warn that they could potentially pull out of the UK as a result of the ongoing windfall tax. The company’s international focus has grown, with Harbour making a final investment decision on a $100m floating LNG project in Argentina last week.
As Energy Voice previously reported, Harbour has also highlighted further growth opportunities in Norway, Mexico, and Indonesia. While the company is pursuing a UK oil discovery at Gilderoy, close to the operator’s Greater Britannia Area, reports have suggested that other North Sea assets are up for sale, including stakes in the Armada, Everest, Lomond, Catcher, and Tolmount fields.
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