JOHN Swinney has called on the Labour UK Government to ditch the Energy Profits Levy that is "hurting Scotland" after BP announced it would be putting its North Sea operation up for sale after 60 years of production.
The global energy firm said the decision to market the business for a potential sale forms part of its strategy to slim down the group by selling off parts. Some 1100 staff work for the North Sea business, part of BP’s approximately 13,960-strong UK workforce.
The move comes despite BP more than doubling its annual profits following the outbreak of the Iran war.
Labour have since been slammed by the Scottish Government, which alleges it is driving the decline of North Sea oil and gas before renewables are ready.
First Minister Swinney said: "BP’s decision to sell its North Sea business marks a time of real uncertainty for workers, their families and communities across the north east.
"The skills and experience of this workforce are vital to Scotland’s future prosperity and our energy security.
"The Scottish Government will work closely with BP, trade unions and partners to understand the impact of the sale process and support workers. Within our limited powers, we will do everything we can to protect Scottish jobs and ensure our offshore energy industry can thrive.
"Westminster’s supertax on jobs is hurting Scotland, especially the north east. The UK Government must scrap the Energy Profits Levy and urgently act to protect jobs."
The announcement comes after Prime Minister Andy Burnham left the door open for future North Sea drilling as he confirmed he told Donald Trump “we can’t ignore” the resources there.
He said he told the US president that he would “take a pragmatic approach when it comes to the North Sea”, adding: “There is a resource there. When people are struggling, we can’t ignore that.”
Scotland's Energy Minister Stephen Gethins said oil and gas production must be managed alongside the increasing deployment of renewables.
Gethins said: "BP has a long and significant history in the North Sea, making a substantial contribution to the economy over 60 years of production. The commercial decision announced today of a sale of its assets will cause uncertainty for workers. The Scottish Government is ready to engage with BP and other partners to understand the impacts of the sale process and to support the workforce.
"Scotland’s future prosperity – and our contribution to energy security – are reliant on North Sea energy production and, crucially, the skills and experience of that workforce, not least in the North East.
"We need to see a parallel track approach to the energy transition, in which North Sea oil and gas production is managed alongside the increasing deployment of renewables. What is happening at the moment is that reserved policies such as the Energy Profits Levy are driving an accelerated decline of North Sea oil and gas before renewables are fully ready to meet our energy needs.
"We are committed to doing everything within our limited powers to ensure the future success of the offshore energy industry, working with local communities, businesses and the UK Government. The UK Government needs to take urgent action to protects jobs, energy security and investment in our energy sector."
The Scottish Greens agreed the sale of BP's North Sea arm is a "stark warning" that governments must accelerate Scotland’s transition to renewable energy and protect workers.
MSP Kristopher Leask said: “After more than 60 years, BP has decided that its North Sea oil and gas business is no longer one of its highest-value opportunities. Our immediate concern has to be for the workers directly affected and the thousands more across the supply chain.
“Workers deserve firm guarantees and a credible jobs plan, not being passed around between multinational corporations while politicians pretend that another round of drilling will fix the problems.
“The North Sea is a mature basin with reserves in terminal decline. Most of what remains is oil, roughly 80% of which is put on tankers and shipped overseas, doing very little to improve our energy security. After 60 years of drilling, the UK has already burned most of its gas and employment will decline regardless of production levels.
“The choice is clear: an orderly, worker-led transition or allowing more chaotic corporate retreats like this one.”
Aberdeen Central MSP Jack Middleton said the UK Government was failing the city, as he hit out at the "meaningless buzzword" of "just transition" being thrown around.
“I’m angry and upset for 1100 BP workers in the North Sea who, during a brutal cost of living crisis, will be fearful about their future and their family’s livelihoods," he said.
“Westminster calls the shots here, and Aberdonians are being failed by a lack of political leadership on this issue from the UK Government.
“The words ‘just transition’ will be thrown around a lot in response to this news, but to my constituents they are meaningless.
“We can’t allow ourselves to be paralysed by meaningless buzzwords and fence sitting while Scottish workers pay the price."
