UK Prime Minister David Cameron announced that the Scottish and UK governments will invest a total of £504m ($720m) in Aberdeen and Scotland which are vital to the country’s North Sea oil and gas industry.
The two governments will equally fund the program, which is in addition to a £20m ($28m) boost for oil and gas industry innovation and diversification.
In particular, the Aberdeen UK City Deal, equally funded by the two governments, will help address various proposals including new energy innovation centre, supporting the industry to exploit remaining North Sea reserves.
The funding will also be used for the expansion of Aberdeen harbor, enabling companies to bid for projects in the oil and gas decommissioning sector, which is estimated to cost £45bn by 2040.
Communities Secretary Greg Clark said: "The City Deal package of support will help prepare the oil and gas industries for the future, given their crucial importance both to north-east Scotland and the country as a whole."
The UK Government also launched a new Ministerial Group on Oil and Gas which will coordinate the UK’s response to the oil price while focusing on vital issues including exports, skills and investment.
Secretary of State for Scotland David Mundell said: "We need action to help in the short, medium and long-terms, building a bridge to the future of the North Sea; helping the UK’s oil and gas industry to export its world-class expertise around the globe; and encouraging diversification of the economy to create new opportunities in other sectors too."
Additionally, the Scottish Government announced £254m City Region funding boost to help support North East’s infrastructure.
Welcoming the further measures to boost the UK oil and gas industry announced by the Prime Minister at a meeting with senior industry leaders this afternoon,
Oil & Gas UK CEO Deirdre Michie said: "Coming on top of the UK and Scottish Governments’ multi-million pound investment in infrastructure and innovation for Aberdeen and the surrounding region announced earlier today, the further measures announced this afternoon will help the industry address the difficulties it currently faces with the low oil price, and ensure it can look towards a more enduring future."
Image: The UK’s offshore infrastructure decommissioning industry is estimated to cost around £45bn by 2040.Photo: courtesy of num_skyman/ FreeDigitalPhotos.net.