A new strategy has been revealed to tackle issues surrounding Scotland's oil and gas sector.

The Industry Leadership Group (ILG) has drawn up a plan which calls for a transformed supply chain to drive efficiency, innovation and internationalisation to ensure the industry's future.

The Group, co-chaired by Energy Minister Fergus Ewing with oil and gas specialist Melfort Campbell, developed the strategy in response to the 'challenging operating environment' caused by the low oil price.

Other factors affecting the industry include a changing commercial and regulatory environment as well as a 'maturing' North Sea basin with international competition.

The three main points of the strategy are:

• Further develop the oil and gas industry supply chain based in Scotland - driving forward a profitable and competitive sector both in the country and supporting worldwide markets and opportunities.


• Deliver a global top three position in terms of innovation and technology development, while maintaining that position in the long term .

• Gain worldwide recognition as having 'centres of excellence' in areas such as subsea, asset integrity, digital offshore and decommissioning.

In addition, the ILG called for the development of the Oil and Gas Technology Centre as proposed in the new City Region Deal, which will aim to unite the development of technology to tackle industry challenges.

Energy Minister Fergus Ewing said: "While it is clear that the oil and gas industry faces severe challenges from a low global oil price, there are still opportunities that Scotland can capture from new discoveries and through our world-class supply chain.

"The First Minister visited Aberdeen last week to announce funding of £24.5 million – part of a £400 million package of support for the North East - to boost research and development, kick-start innovation projects and help industry workers develop new skills.

"This strategy, which we committed to refresh in our most recent Programme for Government, builds on these themes, supporting the industry to maintain it global position and to drive forward the changes required to increase growth in international and supply chain sales and production efficiency.

"I also look forward to seeing the Oil and Gas Technology Centre develop and grow into a world class R&D hub."

(LM)