Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Oil and gas sector deal proposal to be submitted to UK Government next month

CNOOC
The CNOOC Scott platform

The formal proposal for an oil and gas sector deal will be submitted to the UK government next month.

The industry has been in talks around a “transformational” oil and gas sector deal for the beleaguered industry since it was promised in the Conservative election manifesto last year.

The latest downturn, brought on by Covid-19 and creating thousands of job cuts, has prompted repeated calls from politicians for Westminster to speed up the process.

However the proposals have not yet been submitted and are due to be handed in by the end of September, according to the Oil and Gas Authority (OGA).

Speaking at the Decom Offshore conference, the OGA’s head of decommissioning Pauline Innes gave an update on the timeline.

She said: “The ask for government this time is to support a transformational deal, including demand stimulation. The ask of industry is to develop a true partnership, aligning supply chain with new investment in skills.

“The (Supply Chain and Exports) Taskforce proposals, including the consortium model and local content proposals for new net zero projects, are at the heart of the sector deal and a draft is due to be submitted to government by the end of September.”

Ms Innes was speaking directly about the future of the UK supply chain and the “ask” of government to support it.

“This project looks to move beyond oil and gas and to reframe a national approach for the supply chain across a range of energy sectors”, she said.

Opening the conference, Scottish Energy Minister Paul Wheelhouse referred to delivery of a “North Sea transition deal”, with similar rhetoric from Oil and Gas UK earlier this week.

It is expected that the contents of the funding package will support the industry to reskill towards alternative forms of energy and the push towards net zero.

Prior to the outbreak of Covid-19, OGA chief executive Andy Samuel suggested that an Energy Transition Zone, proposed by former oil tycoon Sir Ian Wood, should feature in the deal.

In a visit to an Aberdeen hydrogen station last month, UK Cabinet Office minister Michael Gove confirmed Westminster is “looking at” a sector deal package.

During the 2019 General Election the Conservatives promised an oil and gas sector deal within this parliament, but has not offered a more specific timeframe.

The manifesto said: “We believe that the North Sea oil and gas industry has a long future ahead and know the sector has a key role to play as we move to a net zero economy.

“We will support this transition in the next Parliament with a transformational sector deal.”

Recommended for you

More from Energy Voice

Latest Posts