Major North Sea oil and fuel operator Harbour Energy has revealed plans for job cuts, blaming the influence of the federal government’s windfall tax on earnings.
A spokesperson for Harbour, the most important offshore producer in UK waters, stated the job losses would influence its head workplace features in Aberdeen.
They added that employees had been knowledgeable of the plans however the extent of the cuts have been but to be determined.
The remaining proposals can be topic to session, the spokesperson added.
It marked an escalation within the firm’s response to the rise within the levy on power earnings revealed in chancellor Jeremy Hunt’s autumn assertion final November.
It took the speed to 35% from 25% as the federal government sought to recuperate a few of the price of its power invoice assist for households and companies.
The efficient tax charge stands at 75% due to the 40% company tax cost already utilized however some funding reduction is granted beneath the levy.
Despite that, Harbour introduced in December that it could evaluate its capital allocation plans and shun an oil and fuel licensing spherical within the North Sea.
The firm stated at the moment that it could concentrate on development alternatives inside its present portfolio.
Oil and fuel giants together with Shell and BP suffered tens of billions in losses when the COVID pandemic struck as uncooked power costs stood at lows not seen in trendy occasions.
But as economies slowly bought again in gear, and with demand outstripping provide, costs recovered.
Wholesale fuel prices, nonetheless, later hit report ranges and have been saved excessive as provides have been squeezed amid Russia’s struggle in Ukraine and the next Western sanctions imposed on Moscow for its invasion.
The report earnings loved by massive oil and the like positioned a goal on their backs, with nations, together with the UK, imposing windfall taxes to try to offset a few of the ache being inflicted on households and companies from report payments.
Mr Hunt additionally launched a forty five% levy on electrical energy turbines.
The authorities estimates that its windfall taxes, together with the power earnings levy, will increase £14bn mixed in 2023.
Source: information.sky.com”