Swinney warns Bp North Sea review could hit Scotland jobs
bp north sea operations are under internal review, and BP has not made a final decision on whether to leave the North Sea. The move has sharpened pressure on Scotland’s oil and gas sector, where jobs and spending are tied to the region’s future.
John Swinney in Glasgow
John Swinney said on Saturday he was “very concerned” by reports that BP is considering leaving the North Sea. Speaking to the Press Association during a campaign stop in Glasgow, he said, “I’ve seen the reports and I’d obviously be very concerned about that,” and tied the pressure to the United Kingdom Government’s energy profits levy.
“What will be driving this is the hostile taxation approach of the United Kingdom Government through the energy profits levy, and I’ve told the Prime Minister to his face that the energy profits levy is causing significant economic damage to Scotland and the North Sea oil and gas sector,” he said. That puts the dispute squarely on tax policy, not on a routine portfolio review.
Energy profits levy pressure
Swinney said the levy is “accelerating the decline of the sector” and argued that speculation about BP should prompt early action from the UK Government. He also said Sir Keir Starmer was distracted by pressure on his position because of the scandal surrounding the hiring and firing of former US ambassador Lord Peter Mandelson.
Ed Miliband had described BP’s profits as “morally and economically wrong” in a now deleted social media post, adding another layer of political friction around the company’s first-quarter results. BP’s profits tripled in the first quarter of this year, a figure that sits uneasily beside the political pressure now building around its North Sea assets.
BP profit tripled in Q1
The first-quarter profit jump gives BP more room to reshuffle assets, but the North Sea review keeps the focus on what happens to operations already under scrutiny. For Scottish workers and suppliers tied to the basin, the immediate issue is whether the company’s review turns into a disposal or a continued hold.
The unresolved point is still the one that matters most for the region: BP has started the review, but no final decision has been made. That leaves the North Sea operating base exposed to tax politics, profit pressure and another round of speculation until the company settles its next move.
