Due to the impact of high taxes on competitiveness, US oil producer Apache Corp announced on Friday that it would be suspending drilling operations in the North Sea and reducing its workforce in Britain.

According to a report by Reuters, the APA Corp unit did not disclose the number of workers who would be affected by the decision.

In May of last year, the UK implemented a windfall profit tax on oil and gas producers, which was subsequently increased to 35% in November. This brought the total tax burden on the sector to 75%, making it one of the highest in the world.

"We are reassessing our investments, as we consider the challenging UK macro environment with its increasingly costly and burdensome tax and regulatory regime," an Apache spokeswoman said in an email.

"Given the business climate for the oil and gas industry in the UK, these assets have become less competitive in comparison to the rest of our portfolio," she said.

In an effort to safeguard investment and support domestic production, North Sea producers have called on the government to implement an oil-price floor to the Energy Profits Levy. They have cautioned that without such measures, there is a risk of jeopardizing investment and potentially reducing output at a time when Britain aims to increase its domestic production.

In a bid to enhance energy security, the UK's finance ministry announced on Friday that the windfall tax imposed on oil and gas producers would not be enforced if prices consistently fall below specific thresholds for six consecutive months. This measure is intended to incentivize and bolster the country's energy sector.