AN OIL and gas firm has announced it will cut around 250 onshore jobs in Aberdeen.
Harbour Energy said it was taking the decision to cut around 25% of its workforce because of “the Government’s ongoing punitive fiscal position and a challenging regulatory environment”.
The firm recently announced losses after tax of $93m last year, down from $45m profits the year before which it said reflected “a 108% effective tax rate”.
In a statement, managing director of Harbour Energy’s UK business said: “Harbour is launching a review of its UK operations, which we expect to result in a reduction of around 250 onshore roles in our Aberdeen-based business unit.
“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.
“We are also reviewing the resourcing required to support our Viking carbon capture and storage project, where progress beyond front-end engineering design and the recent securing of a Development Consent Order has been hindered by repeated delays to the Government’s Track 2 process.”
Harbour Energy announced in 2023 it was cutting around 350 onshore jobs out of its 1200 workforce in Aberdeen because of the windfall tax.
The firm has been one of the most vocal critics of the tax, officially known as the Energy Profits Levy (EPL), since its introduction in 2022.
The levy was introduced by the then-chancellor Rishi Sunak following the start of the war in Ukraine with oil and gas firms at the time making record profits.
In July, the UK Government announced the EPL would increase to 38% and would come to an end in 2030.
Russell Borthwick, chief executive at Aberdeen and Grampian Chamber of Commerce, said: “This is a devastating blow for the 250 plus families directly affected – and I fear it is just the tip of the iceberg, unless the government changes course.”
Speaking at the Prime Minister's Questions in Westminster on Wednesday, SNP MP Stephen Flynn blamed Harbor Energy’s job cuts on Labour’s policies.
He said: “He [Starmer] promised that he would unleash a generation of secure energy jobs in my city of Aberdeen.
“Well, today, Harbor Energy, the largest independent player in the North Sea, have announced that they are about to shed their workforce by 25%.
“That's 250 jobs in my constituency gone in the blink of his eye, and you know who they blame, Mr. Speaker, they blame the policies of the Labour Party.”
He added: “I ask the Prime Minister, in fact, can I invite the Prime Minister to come to Aberdeen and explain to my constituents why he is willing to move heaven and earth to save jobs in Scunthorpe while destroying jobs in Scotland.”
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 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.”
