The relationship between the UK Government and the country’s oil and gas industry could hardly be better, a Treasury minister said yesterday.
Sajid Javid, economic secretary, was speaking during a fleeting visit to Aberdeen.
He flew into the city, made a brief appearance at the Offshore Europe oil and gas show, visited energy technology firm Walker Technical Resources at Bridge of Don and was on his way back to London again just after lunchtime.
“We have a very heathy relationship,” he told the Press and Journal when asked how the Treasury views its links with the industry.
He added: “We have frank and robust discussions and the industry appreciates that the government has to deal with a lot of demands on finance.
“We couldn’t have a healthier relationship.”
Mr Javid insisted the controversial £10billion tax grab on the industry in 2011 had not been a mistake, adding: “The country had a huge (trading) deficit back in 2010, the biggest of any major industrial country.
“The government had to tackle this challenge.”
Mr Javid – the fifth most senior minister in the UK Treasury – was speaking during a visit to WTR, where he found out about a groundbreaking asset maintenance partnership in the North Sea.
WTR has joined forces with engineering firm Pyeroy Group – a division of Wood Group PSN – to deliver a significant part of topside integrity work for a late-life extension programme on operator EnQuest’s Thistle platform.
The two service firms will refurbish all four of Thistle’s stair towers using composite repair technology seen as a game-changer because it avoids welding.
It is the first time it has been used in the North Sea and a specialist team has been created to manage the project.
Mr Javid said it was an example of how new and extended field allowances and greater certainty over decommissioning relief were leading to investment, innovation and jobs in the energy sector.
The award of a brownfield tax allowance to EnQuest in February and the operator’s investment of £169million to fully exploit the Thistle field safeguarded nearly 500 jobs.
David Heslop, EnQuest managing director for the North Sea, said: “Considerable supply chain opportunities have been created.”
Recommended for you
