David Cameron
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David Cameron says he is '100%' supportive of North Sea oil

Aberdeen City and Aberdeenshire councils have signed a deal with the Scottish and UK governments for more than £500m of funding - to be spent on shoring up the Oil Sector and developing other industries.

David Cameron has visited Aberdeen for the announcement of a City Deal worth £250m, with funding provided by Westminster and Holyrood, to boost the region's oil and gas industry and newer developing sectors of the economy.

The prime minister also announced £20m of UK government funding for seismic exploration surveys to discover new oil and gas reserves.

The Scottish government has also pledged an additional £254m for investment in key infrastructure in the north east, with First Minister Nicola Sturgeon set to visit the city on Monday.

Critics have alleged that the UK government investment falls short of the Treasury's gain from the North Sea oil and gas industry over the years. Mr Cameron rebuffed the accusation, telling BBC Scotland political editor Brian Taylor: "This shows the British government is 100% behind this industry and behind Aberdeen and behind Scotland in making the best of the opportunities we have."

  • 28 Jan 2016