Harbour Energy to axe 100 jobs, blames windfall tax

(Sharecast News) - Independent North Sea oil and gas producer Harbour Energy on Monday said it was cutting 100 jobs, blaming the government's levy on profits. The cuts are part of a review of the company's UK offshore organisation as it tries to remain competitive amid a global economic slowdown and weak crude oil prices.

"The UK oil and gas sector faces sustained pressure from lower commodity prices and an uncompetitive tax regime, worsened by the government's decision to retain the Energy Profits Levy in the recent Budget," said Scott Barr, Harbour's UK business unit managing director.

"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 EPL, while maintaining our commitment to safety and regulatory standards."

Barr said the unit would "continue to struggle to compete for capital" while the windfall tax remained.

"The future structure of our offshore workforce must adapt to reflect these realities."

Reporting by Frank Prenesti for Sharecast.com