Pressure from the government’s windfall tax has hit Harbour energy and the oil and gas firm are to axe around 100 jobs in the North Sea.
Harbour Energy is the UK’s largest producer of oil and gas has conducted a review into the operations in the North Sea and proposed the job losses.
Managing director Scott Barr this is necessary to ensure their UK business “remains competitive as we continue to adapt to a challenging future”.
The oil and gas producer said they have come under pressure from lower commodity prices amongst and “uncompetitive tax regime”.
Harbour said their situation has been made worse after the government decided to retain energy profits levy in Rachel Reeves Autumn Budget last Wednesday.
Since the tax was introduced Harbour energy has cut around 700 jobs in total, this includes 250 offshore jobs in Scotland.
The windfall tax was introduced by the Tory government then Labour decided to keep it in place until 2030, firms have to give the Treasury around 78% of their profits.
Barr said: “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 energy profits levy (EPL), while maintaining our commitment to safety and regulatory standards.
“Harbour’s UK business unit will continue to struggle to compete for capital within our global portfolio while the EPL remains.
“The future structure of our offshore workforce must adapt to reflect these realities.
“While we must deliver this essential change, we recognise the next few months will be difficult for colleagues.”
