Matthew Hancock, the coalition government’s fourth energy minister, has pledged that the new regulator proposed by Sir Ian Wood is on track to be operational in Aberdeen within months.
Mr Hancock arrived in Aberdeen yesterday to meet industry representatives after being in the job for 10 weeks.
He said he had delayed his visit to the North Sea region until after the referendum in order to avoid being questioned on the government’s contingency plans in the case that Scotland had voted to become an independent country.
He raised a brief chuckle when it was put to him that he is the fourth person to become energy minister in as many years, despite pledges that the key role for the North Sea would have dedicated ministers for the sake of consistency.
The Cambridge economics graduate said he was “honoured” to take the job and said he has long taken an interest in the brief, adding that he visited Aberdeen after his colleague and close ally George Osborne had announced his unpopular £10billion North Sea windfall tax.
“I remember being in Aberdeen the day after the 2011 budget to get people’s views. It is an area I’ve long held an interest in. It is a very important time to get these things right,” he said.
Last night the energy minister met oil and gas chief executives for a private dinner at the Marcliffe Hotel.
Today he will visit Total’s Elgin platform after taking Helicopter Underwater Escape Training (Huet) at Petrofac’s training centre in Altens.
He confirmed that efforts to recruit a chief executive of the Oil and Gas Authority (OGA) was on a “critical path” and that luring candidates away from an existing employment contracts was “an issue”.
“We have always said [the regulator will be established] in the autumn of this year,” he said.
“Since we are aiming for a high calibre chief executive, the logistics of break clauses and contracts are an issue here.
“We are nearing the end of that process. We have a short shortlist
“There is a good reason for hiring the CEO before forming the regulator because we want to change the culture of how the regulator operates to make sure there is more working hand in glove with industry and exercising its judgement and being much more involved in trying to make sure we get all of the potential economic recovery.”
He said that coming to the Granite city was “crucial” for “any energy minister”.
But he admitted he chose to come after the results of the independence referendum.
“Being able to come immediately after the referendum allows us with more certainty to talk about the future,” he said.
“Obviously I had a decision to make whether to come before or after. I could have come before and campaigned but the whole visit would have been taken up, entirely understandably, with issues around the potential for independence.
“I wasn’t prepared to answer any questions about the contingencies for independence.
“So I thought I would end up saying that we haven’t done any contingency planning in answers to all those questions. I decided it was more fruitful to come up immediately after the referendum.
“That uncertainty is now past. I’m delighted the union has been saved. I noticed the endorsement of the union from Aberdeen and Aberdeenshire as well
“Now we can look to the future with certainty.”
He said his job now was to ensure that the upcoming fiscal review and the implementation of the Wood Review proposals “land effectively”.
“I know very clearly what my job is, which is to make these two big important changes following the direction that has been set and are implemented effectively and getting the details right in consultation with industry.”
A spokesman for French oil giant Total, which is hosting Mr Hancock on the Elgin platform said: “It is a pivotal time for the industry as we have seen from the Wood Report, at the same time there is still a very positive story to tell. We are delighted to be showing the minister real life offshore on the Elgin platform.”
A Petrofac spokesman said: “We were very pleased to be able to welcome the Minister to Petrofac Training Services.
“Our experienced instructors enjoyed working with him and his team to deliver their essential survival training and we trust they have a safe and productive trip offshore.”
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