Industry body Oil & Gas UK has welcomed the Prime Minister’s £250million investment deal to help the North Sea industry.
Chief executive Deirdre Michie said the move was a “much needed positive step forward” for Aberdeen.
The Scottish Government has also agreed to fund the investment on a 50-50 basis and pledged an additional £254million for infrastructure in the area.
Michie said: “We very much welcome Prime Minister David Cameron’s visit to Aberdeen and his recognition of the seriousness of our situation. His announcement today of a £250 million fund for
the Aberdeen Region City Deal, coupled with the matched funding from the Scottish Government, is a much needed positive step forward for north east Scotland and will benefit our sector more widely.
“While the oil and gas sector is under severe pressure globally, due to the current oil glut and price collapse, it is being felt particularly forcefully on the UK Continental Shelf (UKCS), which is a mature basin with its own particular difficulties and cost challenges.
“Companies are doing all they can to bring down costs and be more efficient, but many are still having to make difficult decisions. Support from both the UK and Scottish Governments, the Oil and Gas Authority and local authorities is vital so it is extremely timely that the Deal will see co-operation between these parties.
“The UKCS needs to restore its competitiveness and attractiveness as a place to do business. Without that, industry won’t be able to maximise recovery of resources – the billions of barrels of oil and gas that still remain in the North Sea.
“Aberdeen and the north-east of Scotland have to compete with international energy hubs such as Houston and Dubai. Investing in infrastructure and innovation here, particularly through the new energy innovation centre, is a hugely positive move which will further cement Aberdeen’s position as Europe’s oil capital, at the heart of the UK ‘offer’ to the global oil and gas supply chain.”
The industry body has also welcomed the creation of a new ministerial group to be chaired by Energy Secretary Amber Rudd.
Rudd said the UK Government stood “100% behind the industry”.
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