Oil and fuel agency Harbour Energy plans to chop 250 jobs in Aberdeen | EUROtoday

The UK’s largest oil and fuel producer has mentioned it expects to about 250 jobs in Aberdeen.

Harbour Energy mentioned it had launched a evaluation of its UK operations and needed to take “difficult steps”, blaming regulation and “punitive” authorities measures.

The UK authorities mentioned its ideas had been with any employees affected by the “commercial decision”.

Aberdeen and Grampian Chamber of Commerce (AGCC) described the information as a “devastating blow”.

Harbour Energy had beforehand introduced the lack of 350 UK onshore jobs in 2023.

Harbour Energy has been a vocal critic of the Energy Profits Levy, generally known as the windfall tax, launched by the Conservative UK authorities in 2022 and prolonged after Labour got here to energy final yr.

The UK authorities mentioned on the time it was strengthening the tax to make sure North Sea oil and fuel producers contribute their justifiable share in the direction of the vitality transition.

It has additionally pointed to its determination to headquarter Great British Energy in Aberdeen and set up a nationwide wealth fund to assist unlock funding in renewables.

But Harbour Energy has claimed it faces extreme taxation which has worn out income and undermined funding in its North Sea operations.

Scott Barr, managing director of the agency’s UK enterprise, mentioned a evaluation was anticipated to lead to 250 job losses in Aberdeen – a couple of quarter of its UK workforce – along with the 350 job cuts beforehand introduced.

He mentioned: “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.”

The situation was raised at Prime Minister’s Questions, with SNP Westminster chief Stephen Flynn accusing Sir Keir Starmer of “destroying jobs in Scotland”.

The prime minister mentioned “nobody wants to see job losses”, however accused the SNP of attempting to “distract from their disastrous record” after practically 20 years in authorities.

The Conservative chief Kemi Badenoch additionally raised the Harbour Energy job losses. The prime minister accused her of being a “climate defeatist”.

A UK authorities spokesperson mentioned: “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 authorities has reformed the Energy Profits Levy to help funding and provides trade certainty and stability.”

Russell Borthwick, chief executive of Aberdeen and Grampian Chamber of Commerce, said: “This is a devastating blow for the 250-plus households immediately affected – and I worry it’s simply the tip of the iceberg.”