Scottish First Minister Calls on UK PM to Sign Deal to Help Oil, Gas Industry

Scotland's First Minister Nicola Sturgeon has called on the British prime minister, David Cameron, to sign a multi-million pound deal to ensure Aberdeen's place as an oil and gas logistic hub. In a letter to Cameron and published on the Scottish government website on January 21, Sturgeon says that the deal should be signed as matter of urgency. 

The deal would see the Scottish government and the UK government fund a deal on a 50:50 basis to increase investment, innovation, infrastructure, and connectivity to assist the suffering oil and gas industry in Aberdeen. The agreement would work on a tripartite basis, with the UK and Scottish governments as well as local authorities tasked with implementing the deal.

"Given the current situation in Aberdeen, with significant private sector job losses announced in recent weeks by the oil and gas industry, it is vital that government sends a strong and unequivocal signal that it is fully supportive of the region’s position as a global oil and gas hub," Sturgeon said. "The city deal provides a good opportunity to signal our respective governments’ support for the region. Against that backdrop, I am supportive of moving as soon as possible to agree the Aberdeen city deal."

Under the proposed deal, the governments and authorities would work to make Aberdeen an innovation hub, with a focus on technology and research and development. 

The Scottish oil and gas industry, once one of the strongest industries in the Scottish economy, has suffered massively in recent years as a result of falling oil prices and global recession.