Harbour Energy, the UK’s largest oil and gas producer, has announced plans to cut an additional 250 jobs in Aberdeen. The company cited regulatory hurdles and what it described as government measures that were detrimental to its operations as reasons for the job cuts. The UK government expressed sympathy for the affected workers, acknowledging the impact of Harbour Energy’s decision.
The Aberdeen and Grampian Chamber of Commerce (AGCC) reacted to the news with dismay, calling it a “devastating blow” to the region. This announcement comes after Harbour Energy had previously disclosed the loss of 350 onshore jobs in the UK in 2023. Scott Barr, the managing director of the company’s UK business, shared that the review leading to these job cuts was necessary to align staffing levels with reduced investment due to unfavorable fiscal policies and a challenging regulatory landscape.
Harbour Energy had been critical of the Energy Profits Levy, a windfall tax introduced by the UK government in 2022 and extended under the Labour administration. The company argued that excessive taxation had eroded profits and hindered investments in its North Sea operations. Despite the government’s efforts to promote renewable energy and establish a national wealth fund, Harbour Energy still faced financial challenges that necessitated the recent round of job cuts. The issue was raised in Parliament, with political leaders discussing the implications of Harbour Energy’s decision and the broader energy transition challenges facing the UK.
The UK government spokesperson reiterated the government’s commitment to supporting affected workers and communities, noting ongoing reforms to the Energy Profits Levy to encourage investment and provide stability. Russell Borthwick of the AGCC expressed concern that the recent job losses at Harbour Energy were just the beginning of potential challenges for the industry. As the energy sector grapples with shifting dynamics and policy changes, both oil and gas producers and renewable energy companies are navigating uncertainties that impact their operations and future investments
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