Scotland Pledges Another Multi-Million-Pound Fund to Oil, Gas Industry
The Scottish government has announced on February 1 that it will provide additional funding of almost £25mn to aid the country's struggling oil and gas sector.
In a press release issued on the government's website today, it was announced that a total of £12.5mn would be provided to oil and gas firms for innovation purposes. Of that, £2.5mn will be earmarked to fund the firms to develop new "innovative technologies."
The remaining £10mn will be provided to assist oil and gas firms to "reduce risks associated with carrying out research and development, as well as giving them access to specialist experts who will help them kick-start innovation projects and maintain their global competitiveness," the press release said.
The £12.5mn in funding is provided by economic development agency Scottish Enterprise. Besides the funding, the agency has also begun a research project to analyse and understand the extent of gaps in the availability of finance for the oil and gas sector, Scotland's First Minister Nicola Sturgeon said.
Additionally, a further £12mn will also be provided in funding for the support of individuals affected by the downturn in the Scottish oil and gas sector. The funding is provided for those individuals to "retain skills or to retrain", the government said. This funding will be provided through a Transition Training Fund.
Speaking about the funding, the CEO of Scottish Enterprise and chair of Scotland’s Energy Jobs Taskforce Lena Wilson said that the investment was "critical" to ensure a sustainable industry in the future.
“Despite a huge collective effort over the last year to help mitigate the pressures on Scotland’s oil and gas industry we continue to see and feel the impact of the low oil price," she said. “It is absolutely critical that we invest our efforts in the right areas to support those impacted today whilst laying foundations for a vibrant and sustainable industry in the future."
The announcement of the £24.5mn in funding comes less than a week after the signing of a massive financing deal, the Aberdeen City Deal, which aims to bolster Scotland's flagging oil and gas sector. The earlier deal, signed by Cabinet Secretary for Infrastructure, Investment and Cities Keith Brown on behalf of the Scottish government and by Scottish Secretary David Mundell on behalf of the UK government, pledges £250mn to the oil and gas industry. Among other things the money will go on creating a new energy innovation centre to assist the industry to exploit remaining North Sea reserves, and the expansion of Aberdeen harbour, to enable the city to compete for decommissioning work. The funding will come equally from the UK and the Scottish governments.
Erica Mills