Boris Johnson’s has met with oil giants to trash out new terms for North Sea exploration as he delayed the launch of the UK’s new “energy supply strategy”.
The Prime Minister held a round table meeting with big energy producers on Monday as he balanced demands for a windfall tax on oil company profits against the need to find alternative energy supplies caused by the Russian invasion of Ukraine.
Downing Street said the Prime Minister met with oil bosses to discuss “increasing investment in the North Sea oil and gas industry and boosting supply of domestic gas”.
In a signal more tax breaks could be on the way for the North Sea, the PM and the industry representatives discussed how to “remove barriers facing investors and developers, and help projects come online more quickly”.
The North Sea provides 47 per cent of the country’s gas, and helps meet 40 percent of the country’s overall energy needs.
Calls have been made by environmental campaigners and politicians in Scotland to wind down North Sea oil and gas production.
The controversial Cambo oil field, with a potential 800 million barrels, remains in limbo after Shell pulled out of the project last year.
Last week Johnson pledged a new long-term energy plan “in the days ahead” to help Britain become better able to cope with energy demands.
But the review has been delayed for another week. The PM’s official spokesman said: “I wouldn’t say it has been, it’s important we take the time to get this right.”
It’s understood it will announce plans for more renewable production and nuclear power sources.
The moves come as pressure mounts over the UK’s reliance on Saudi Arabia amid reports that Johnson will visit the Middle Eastern country this week to meet Crown Prince Mohammed bin Salman.
Saudi Arabia executed 81 people on Saturday in its biggest mass execution in decades just days after Foreign Secretary Liz Truss called for Britain to cut reliance on authoritarian regimes.
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