Scotland’s First Minister John Swinney has expressed deep concern over reports that oil giant BP is considering withdrawing from the North Sea. Speaking during a campaign stop in Glasgow on Saturday, Swinney attributed the potential move to the UK Government’s windfall tax on oil and gas profits.
BP's internal review
Bloomberg reported that BP has initiated an internal review of its North Sea operations, though no final decision has been reached. The news has sparked alarm among Scottish political leaders, who warn of significant economic repercussions.
“I’ve seen the reports and I’d obviously be very concerned about that,” Swinney told the Press Association. “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.”
The First Minister emphasised that the levy is accelerating the sector’s decline and called on the UK Government to act swiftly. “It’s accelerating the decline of the sector and I made it clear to the Prime Minister he should remove that energy profits levy, and the speculation about BP I think should prompt early action from the UK Government,” he added.
Political distractions
Swinney also criticised Prime Minister Sir Keir Starmer, suggesting he is distracted by the controversy surrounding the hiring and firing of former US ambassador Lord Peter Mandelson. “But, as with so many questions of the challenges that we face, the Prime Minister is distracted by his own failures and can’t take the proper actions to protect jobs and employment within Scotland, and that’s an example of the weakness and the failure of a Labour Government,” Swinney stated.
The reports follow a now-deleted social media post by UK Energy Secretary Ed Miliband, who described BP’s profits—which tripled in the first quarter of this year—as “morally and economically wrong.” The UK Government has been contacted for comment regarding Swinney’s remarks and the potential impact of the windfall tax on the North Sea industry.
