Cabinet Secretary Keith Brown has called on "further fiscal support" for exploration within the North Sea oil and gas sector.

Mr Brown will urge the UK Government to do more for the industry at Oil and Gas UK's 'Open for Business' conference in Aberdeen on Tuesday, 14 June.

In its March budget, the UK Government pledged to use the UK Guarantees Scheme for oil and gas infrastructure to secure new investment in assets of strategic importance.

However, Mr Brown said it "must take the action needed to protect businesses and jobs".

At the meeting, Mr Brown will say: "The Scottish Government is engaging closely with the industry, trade unions and regulator to overcome the current challenges to ensure a long term future for the sector.


"However, the UK Government retains control of the key taxation levers affecting the sector and must take the action needed to protect businesses and jobs. Although the fiscal changes announced in the March budget were welcomed, it was ultimately a missed opportunity as a number of challenges remain.

"Exploration is the future life-blood of the industry, without which we will never realise the 20 billion barrel potential of the North Sea. Higher rates of exploration are crucial if we are to maximise economic recovery and avoid premature cessation of production.

"In the Spring Budget, the Chancellor also committed to consider loan guarantees. Access to finance continues to be considered one of the greatest challenges in the basin, but we have heard no further details since the Budget on these critical issues. The UK Government must provide more clarity on their use - they could potentially be used to ensure critical assets and infrastructure remains operational, preventing systemic risks."

(LM)