Harbour Energy Plans Further Job Cuts Amid Tax Pressure

Harbour Energy is preparing to eliminate roughly 100 offshore jobs in the UK North Sea as the extended windfall tax continues to limit investment and activity across the region.

The London-listed company said the new round of reductions follows the Labour government’s decision to keep the Energy Profits Levy in place until March 2030. Operators argue that the levy — introduced in 2022 — has made the UK one of the least competitive offshore environments for new capital spending.

Scott Barr, managing director of Harbour’s UK operations, said the offshore workforce must be adjusted to reflect “reduced activity and production levels” in the basin. He cautioned that the business will “continue to struggle to compete for capital within our global portfolio while the EPL remains.”

Harbour has already cut about 600 UK jobs since the levy was enacted. The latest reductions will follow a consultation period scheduled to conclude in the first quarter of 2026.

The company, active in nine countries and now the largest independent producer in the UK sector after acquiring Wintershall Dea’s non-Russian assets last year, is facing the same pressures confronting other North Sea operators: declining output from aging fields and a headline tax rate of 78% once the levy is applied.

Many producers had hoped the new government would wind down the EPL early to revive delayed projects and stabilize offshore employment. Instead, the ongoing tax burden is driving operators to scale back spending and reduce headcounts as they navigate softer commodity prices and a tougher investment landscape.