New oil discovery in North Sea

The SNP has welcomed news of an oil discovery in the North Sea, while calling on the UK Government to fast track tax breaks for oil companies.

The deposit – which the initial estimates suggest could contain between 13-31 million barrels – was discovered by Faroe Petroleum in the Norwegian sector of the North Sea.

Taxes on North Sea oil and gas production were cut in the UK Government’s March budget, with Chancellor George Osborne claiming the move would be worth £1.3bn over five years.

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But the SNP has used the new find to call for a consultation on exploration incentives to allow the tax breaks to be brought forward.

Callum McCaig MP, the SNP’s Energy and Climate Change spokesperson, said: “This discovery is just across the water from Scottish shores in the Norwegian North Sea where there have been several recent success stories including the Johan Sverdrup field, which was discovered as recently as 2010 in a mature area that has previously been investigated without success, and is thought to contains billions of pounds worth of oil.

“While Norway have taken action to incentivise exploration – and are getting results – the UK Government is resting on its laurels despite promising action months ago.

“We need more exploration to secure future production which in turn has a positive effect across the supply-chain and the wider economy.  We need swift action so that these benefits can be felt in Scotland.

“That is why the UK Government must commit to consulting with the oil industry on exploration incentives as a matter of urgency so that measures can be brought forward in the Autumn Statement.”