Government let oil industry down as 10,000 jobs lost

The UK Government has deprived the oil and gas industry of £10 billion worth of contracts and up to 10,000 jobs by failing to support bids made by UK firms […]

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By Priyanka Shrestha

The UK Government has deprived the oil and gas industry of £10 billion worth of contracts and up to 10,000 jobs by failing to support bids made by UK firms for North Sea contracts.

In a letter to MPs, British oil rig maker OGN Group warned the country’s manufacturers would go out of business if they don’t get support and is urging the Government to promote the UK oil industry both here and abroad.

Dennis Clark OBE (pictured), Chairman of the company claims that in the past two years, only 7% of new platforms for the region were made in Britain. He said the last contracts went to South Korea, which would have created up to 1,500 direct new jobs in the North East over four years.

He stated in the letter: “Over the past two years, fabrication contracts for North Sea development worth in excess of £10 billion have been placed overseas. It is estimated that more than 10,000 jobs would have been created in this country had those contracts been placed in the UK… The UK’s fabrication sector is getting no support from its own Government.”

He added Norway, like many other countries, requires oil companies to use local suppliers for its offshore oil and gas projects, however, the UK Government said EU rules forbid it from doing the same.