The British oil industry welcomed a major boost on Monday when the British government gave the go-ahead for a billion-pound investment in North Sea oil projects which could create up to 2,500 new jobs.
The government said it had approved four major schemes which would inject over one billion pounds (1.64 billion euros, 1.47 billion dollars) of investment into the North Sea oil industry and boost production by millions of barrels a year.
The projects include plans by BP and partners to build a new gas pipeline to the Magnus field, further investments by BP in the Foinaven oilfield, and by Ranger oil in the Kyle oilfield and Kerr-McGee in the Leadon oilfield.
Oil companies have become increasingly keen to exploit North Sea crude pockets in recent months as prices soared to 10-year highs this autumn.
The government hailed the investment plans as an endorsement of the state of the British economy and a "great day" for the country's oil industry.
"This is one billion (pounds) not coming from the government but from the private sector," Trade and Industry Secretary Stephen Byers told BBC Radio.
"It is hard-headed multinationals looking at the UK and recognizing the underlying strength of our economy, with inflation under control, sound public finances and the economic stability," he said.
Union leaders also welcomed the news, which came just days after General Motors announced it would shut down one of its Vauxhall car plants near Luton with the loss of two thousand jobs, marking the end of a bleak year for swathes of British manufacturing industry.
"This is a fantastic jobs boost, not just for the North Sea, but also for fabrication yards," Danny Carrigan, Scottish regional secretary of the Amalgamated Engineering and Electrical Union, said.
"We have been pushing very hard for this to happen and we are delighted that the government has acted. The North Sea is set for expansion which is wonderful news for Scotland" -- LONDON (AFP)
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