UK and Scottish ministers have pledged to put their differences aside and “pull together” to help save North Sea oil and gas jobs.
Representatives from the administrations at Westminster and Holyrood held crunch talks with key figures from the offshore sector in London yesterday.
The governments were told at the summit of the urgent need to tackle the crisis caused by plummeting world prices.
They pledged afterwards to work “collaboratively” to deploy a “range of powers”.
Energy Secretary Ed Davey and Scottish Secretary Alistair Carmichael will travel to Aberdeen tomorrow for further meetings.
Ministers are under pressure to take action to ensure the slump does not jeopardise thousands of jobs.
Trade body Oil and Gas UK said this week that its fears were “mounting daily”, and is lobbying for the abolition of the supplementary charge tax on firms.
Danny Alexander, the chief secretary to the Treasury, revealed in yesterday’s Press and Journal that ministers were considering using the Budget in March to “go further” than tax cuts announced at last month’s Autumn Statement.
Speaking after yesterday’s summit of the Pilot task-force, Mr Carmichael said: “This was a good and constructive meeting where everyone round the table had their say and described with some clarity the challenges now facing the North Sea oil and gas sector.
“In particular I’m pleased the Scottish Government now recognises the need for Scotland’s two governments to work together collaboratively.
“Frankly the industry is too important to Scotland, especially in the north-east, for anything else.
“Today’s meeting shows the value of the industry and governments working together in good faith, with the best interests of the sector the sole focus of everything we do.
“Both the UK and Scottish governments have a range of powers they can use to help oil and gas companies, as well as those in the supply chain, and we should all be pulling together to help the industry weather the current storm.”
Malcolm Webb, Oil and Gas UK chief executive, said the meeting provided a “timely opportunity” to discuss the “serious challenges”.
He added: “With so much existing and future production and associated jobs and tax revenues at risk, we conveyed the urgency with which fiscal and regulatory change is required, alongside industry efforts to tackle costs and improve efficiency.
“With oil prices now well below $50, Oil and Gas UK believes that the rationale for the abolition of special taxes, particularly the supplementary charge, is compelling.
“it also sees it as crucial that the newly-formed Oil and Gas Authority is rapidly resourced so that it is well placed to perform robust stewardship of the sector.”
Scottish Government Energy Minister Fergus Ewing said: “The PILOT meeting in London this afternoon was a welcome opportunity to engage with industry leaders who agreed with the Scottish Government’s call for urgent reform of the taxation regime for North Sea oil and gas.
“Industry representatives were clear that in addition to the introduction of an investment allowance, a substantial reduction in the supplementary charge is required if prices remain at current levels.
“In addition, I renewed calls for the UK Government to make the concept of Total Value Added (TVA) a key component of fiscal policy decisions.
“The Scottish Government is committed to a sustainable future for the oil and gas sector in Scotland and to working in partnership to secure maximum value for the economy, the industry and society.”
