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Scottish Secretary David Mundell to make oil and gas trip to Mozambique David Cameron to set out North Sea 'help' plan
(about 2 hours later)
Scottish Secretary David Mundell is to visit Mozambique to explore further oil and gas partnerships with Scotland. The prime minister has announced that he will go to Aberdeen on Thursday to set out what more can be done to help the oil and gas industry.
He will visit the town of Pemba to build on a formal memorandum of understanding with Aberdeen. David Cameron told MPs that the industry was facing significant problems, and said his government was determined to help.
The Scotland Office said the area had "huge reserves of offshore natural gas". A special Scottish government cabinet meeting was held on Tuesday to discuss the state of the industry.
News of Mr Mundell's trip came after the Scottish cabinet held a special meeting about the state of the North Sea oil and gas sector. First Minister Nicola Sturgeon has called for a cut in North Sea taxes.
First Minister Nicola Sturgeon said her government wanted UK Chancellor George Osborne to use his March Budget to reduce the "tax burden" on the industry. Mr Cameron told the House of Commons that he was ""determined we build a bridge to the future for all those involved in the North Sea".
Mr Mundell is due to visit Aberdeen on Thursday where he will formally announce his February trip to Mozambique during a meeting with representatives of the offshore oil and gas industry. He added: "I am going to Aberdeen tomorrow when we will say more about what we can do to help the industry at this vital time."
'Expertise to share' The cost of a barrel of Brent crude oil has fallen from more than $100 in January 2014 to less than $30 in January of this year.
The minister said: "Aberdeen's link-up with Mozambique is a win-win for both sides. Following its meeting on Tuesday, the Scottish government said it was to ask Chancellor George Osborne to ease the "tax burden" on the North Sea oil industry in his March budget.
"Mozambique can learn a huge amount from Aberdeen's oil and gas hub model, and its associated experience and expertise. Ministers also agreed that they would lobby to "remove barriers to exploration" and back reskilling.
"At the same time, Scottish companies will be able to bid for new work and contracts out in Mozambique. The Secretary of State for Scotland, David Mundell, will also be in Aberdeen on Thursday as part of a drive to forge a new trading partnership between Aberdeen and the Mozambique town of Pemba.
"Our oil and gas sector has huge expertise to share. 'Huge expertise'
Mr Mundell is to visit Pemba next month. The area is said to have "huge reserves of offshore natural gas", and already has a formal memorandum of understanding with Aberdeen.
The minister said: "Mozambique can learn a huge amount from Aberdeen's oil and gas hub model, and its associated experience and expertise.
"At the same time, Scottish companies will be able to bid for new work and contracts out in Mozambique. Our oil and gas sector has huge expertise to share.
"This deal will also bring fantastic opportunities for British companies working in the Scottish oil and gas sector to win new contracts supporting Pemba's growing offshore industry.""This deal will also bring fantastic opportunities for British companies working in the Scottish oil and gas sector to win new contracts supporting Pemba's growing offshore industry."
Councillor Jenny Laing, leader of Aberdeen City Council which has been driving the Pemba initiative, said: "I very much welcome the visit to Mozambique by David Mundell. It will help reinforce the commitment of the UK to supporting Aberdeen and its industries." The Pemba initiative has been driven by Aberdeen City Council.