An oil and gas heavyweight is expanding in the North Sea as the Iran war fuels concern about energy security in the UK

A North Sea heavyweight that slashed jobs in response to the windfall tax has underlined the appeal of investing in the area amid the surge in crude prices fuelled by the Iran war.

Harbour Energy said it expected to generate significant cash flow this year "supported by the current commodity price environment".

The prediction highlights the scale of the benefit that firms are set to enjoy following the sharp increase in oil and gas prices since the US and Israel launched their war on Iran in February.

The Brent crude price has remained above $100 per barrel for weeks amid warnings that supplies from the Middle East could be disrupted for months even if a peace deal is agreed soon.

Brent crude sold for $60/bbl in January.

Harbour has held out the prospect that the additional cash it expects to generate will be used to fund an increase in dividends for shareholders who netted payouts worth around $500m in total last year.

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The news comes as consumers in the UK battle with steep increases in fuel prices and the prospect of a hike in energy bills following the rise in oil and gas prices since February.

It will anger many people in Scotland and in Aberdeen in particular. The city has been hammered by the swinging job cuts that Harbour has announced in recent months amid claims the windfall tax had made the UK North Sea an unattractive place to invest in.

Harbour has been one of the most vocal critics of the windfall........

© Herald Scotland