Harbour Energy Announces 250 Job Cuts in Aberdeen Amid Fiscal Challenges
Harbour Energy, the largest independent oil and gas producer in the UK North Sea, has announced plans to cut 250 jobs in Aberdeen, citing 'punitive' government taxes and a challenging regulatory environment as the primary reasons. This decision follows a comprehensive review of its UK operations, aimed at aligning staffing levels with reduced investment. The company emphasized the impact of the government's fiscal policies on its operational capabilities and future investment plans.
The job cuts, which represent about a quarter of Harbour Energy's workforce in Aberdeen, come on top of 350 roles eliminated in 2023. Scott Barr, managing director of Harbour's UK business, expressed regret over the necessity of these measures but underscored the need to adapt to the current economic and regulatory landscape. The Aberdeen and Grampian Chamber of Commerce has labeled the job losses as a 'devastating blow' to the local economy and workforce.
Harbour Energy's financial performance has seen a significant downturn, with the company reporting a swing from earnings of $45 million in 2023 to losses of $93 million in 2024. The firm also highlighted delays in the government's track 2 process as a hindrance to progress on the Viking carbon capture and storage project, further complicating its operational and financial outlook.
The announcement has sparked a political debate, with the Shadow Energy Secretary criticizing the government's policies for jeopardizing jobs and energy security. In response, a Downing Street spokesperson stated that the decision was a commercial one, influenced by global inflation and supply chain issues, and reaffirmed the government's commitment to supporting the industry. As Harbour Energy navigates these challenges, the focus remains on stabilizing its operations and contributing to the UK's energy sector amidst evolving fiscal and regulatory frameworks.
