Harbour Energy to cut 350 onshore jobs due to windfall tax

(WO) – Harbour Energy alerted staff that it plans to cut 350 onshore jobs, due to the UK’s windfall tax, according to BBC News.

In a statement, the oil and gas producer said it is “working hard to mitigate the impact” of the workforce reduction with recruitment freezes and a voluntary redundancy scheme. While Harbour’s onshore staff will experience significant cuts, the company assured that it’s offshore sector won’t feel the affects as harshly.

HM Treasury insists that the Energy Profits Levy “strikes a balance between funding cost of living support” while “encouraging investment” to boost the UK’s energy security. However, oil and gas producers are hesitant to invest in the UK’s energy sector on account of high tax rates.

For example, EnergyVoice.com reported that Harbour Energy and Equinor have exited their stakes in the North Sea’s Bressay oil field because of the windfall tax. The news comes as over 90% of North Sea oil and gas operators have cut North Sea spending, due to the windfall tax.