McArthur presses case for Flotta oil terminal

Orkney MSP Liam McArthur used a ministerial statement in the Scottish Parliament to press for concerted action by the UK and Scottish governments, working alongside the oil and gas sector, to help ensure the longer term viability of processing at the Flotta terminal.

The statement by the minister for business, energy and tourism, Fergus Ewing, was on future prosperity for the North Sea, at the request of the Labour Party.

It followed the Offshore Europe conference held in Aberdeen the previous week and the growing concern at significant job losses within the oil and gas sector.

A recently published report by Oil & Gas UK estimated that the wider sector could face further job losses on top of the 65,000 lost in the last 20 months.

Mr McArthur said: “The clear message coming out of the Offshore Europe conference last week is that the consistent low price of oil below the cost of production in the North Sea presents a genuine and serious risk to the longer term viability of oilfields, pipelines and processing.

“It is now imperative that the UK and Scottish governments, working closely with the Oil and Gas Authority, redouble efforts to identify a range of creative solutions that will help extend the life of UK Continental Shelf oilfields.

“Some of that work is well underway and we are already seeing signs that costs are being brought down.

“However, more concerted action is needed. The minister highlighted the need for attitudes in the sector to change, but also pointed to the success that many companies have had by engaging directly with their workforce on ways costs can be reduced. That seems to be the most sensible approach.

“This will continue to be a difficult and uncertain time for those in the industry and supply chain, including those based at the Flotta terminal.

“However, I believe that with close collaboration between government, OGA and the wider sector we can avoid premature decommissioning of oilfields and safeguard jobs over the longer term.”