Harbour Energy, one of the largest North Sea oil and gas companies has said it will cut jobs following an increase in the windfall tax for oil and gas production profits, the Energy Profits Levy (EPL).

A few months ago, the government announced the EPL will rise from 25% to 35%, as part of its measures to tackle the cost of living crisis.

Although the energy giant has not yet confirmed how many employees will be made redundant, it has been reported that most of those will be Aberdeen-based.

A Harbour Energy spokesperson told ELN: “Following changes to the EPL, we have had to reassess our future activity levels in the UK.

“We will continue to support investment on the many attractive opportunities within our existing portfolio, but we are scaling back investment in other areas such as a new exploration licensing.

“As such, we have initiated a review of our UK organisation to align with lower future activity levels.”

An HM Treasury spokesperson told ELN: “The EPL strikes a balance between funding cost of living support while encouraging investment in order to bolster the UK’s energy security.

“We have been clear that we want to encourage reinvestment of the sector’s profits to support the economy, jobs and our energy security, which is why the more investment a firm makes into the UK. the less tax they will pay.”

ELN has approached BEIS for comment.