The firm, which employs 1,700 people across its global operations, intends to cut jobs at its headquarters in the North Sea hub of Aberdeen, Scotland.
The move, however, will be subject to consultations.
In November 2022, UK Prime Minister Rishi Sunak increased the Energy Profits Levy (EPL) from 25% to 35% on oil and gas companies, thus bringing the total taxes to 75% on the sector.
Effective until March 2028, the tax applies to profits made from oil and gas extraction in the UK.
Harbour Energy said in a press statement: “Total UK capital expenditure reduced compared to previous expectations, with certain opportunities no longer being pursued following the changes to the EPL announced in November, including the Total-operated EIH well at Elgin Franklin and participation in the 33rd Licensing round.
“Review initiated of UK organisation to align with lower future activity and investment levels in the country.”
Harbour Energy CEO Linda Z Cook said the company delivered approximately 15% of the country’s domestic oil and gas supplies in 2022, supporting its energy security.
Cook said: “However, while oil and gas prices have reverted to more normal levels, we still face a tax rate of 75% in the UK due to the recent tax changes, making investment in the country less competitive.
“As a result, the EPL necessitated a review of our future activity levels in the UK and reinforced our ambition to grow and diversify internationally.”