Harbour Energy plans to cut an additional 100 UK offshore jobs. This decision directly follows the UK government’s recent extension of the Energy Profits Levy (EPL) through 2030. The company attributes these significant reductions to a challenging investment climate within the North Sea.
Impact of Extended Levy on Investment
The operator states that its North Sea assets are struggling to attract necessary capital. This difficulty arises from the current 78% tax burden. This burden specifically includes the extended windfall tax. Consequently, investment in crucial UK projects has become less viable for the company.
Prior Workforce Adjustments
These upcoming job reductions mark a continuation of previous actions. Harbour Energy had already implemented earlier workforce cuts. These prior adjustments also aimed to manage operational costs and adapt to market conditions.
Company’s Perspective on Tax Burden
Harbour Energy consistently emphasizes the significant impact of the 78% tax rate. This high tax rate directly affects its ability to secure funding for exploration and development. It makes UK North Sea projects less competitive globally. Investors, therefore, seek more attractive opportunities elsewhere.
The extension of the Energy Profits Levy has created an uncertain long-term environment. Companies now face prolonged financial planning hurdles. This situation specifically impacts capital-intensive projects within the UK continental shelf. The oil and gas industry continues to monitor the broader economic fallout.
The company’s decision highlights ongoing concerns from energy producers. They worry about the stability of fiscal regimes. Such instability can deter future investments. This ultimately affects job creation and energy security in the region.
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