Prime Minister Andy Burnham has confirmed he told US President Donald Trump that the UK 'can't ignore' North Sea oil and gas resources, saying he intends to take a 'pragmatic approach' to the basin.
Responding to Mr Trump's claim that the Prime Minister had pledged to 'open up North Sea oil', Mr Burnham said: 'I indicated in the phone call that we had a week last Monday that I would take a pragmatic approach when it comes to the North Sea, and that is my intention as we go forward from here.'
He added: 'There is a resource there. When people are struggling, we can't ignore that. Hence, me indicating that to the president.'
The comments come as consultations continue on the Jackdaw and Rosebank developments, with the energy sector urging ministers to approve both projects.
Speaking at the White House on Wednesday, Mr Trump welcomed Mr Burnham's reported stance, saying: 'Well, he did say one very good thing. He said he's going to open up North Sea oil. If he does that, you're going to be a wealthy country.'
He added: 'You have your own oil and gas. If you use the North Sea, the UK will be a really rich country. I cannot get the point across. The new gentleman, when I spoke to him, he said he's going to open up the North Sea. Let's see if that happens.'
Russell Borthwick, Chief Executive at Aberdeen & Grampian Chamber of Commerce, said: 'Early signs from Andy Burnham suggests he will take a more pragmatic approach to get the North Sea working, which could unlock some £50 billion in new investment. But actions, not words, will make the much-needed difference.
'Consent for Jackdaw and Rosebank is essential to unblock the regulatory process which has been dysfunctional for years. The punitive, jobs-wrecking EPL tax must be removed now and replaced by a fairer regime that allows investment and only kicks in under windfall conditions.
'And we must be pragmatic when it comes to new licensing - allowing the UK to drill for the oil we need, as opposed to driving ever greater reliance on imports.'
Source: Aberdeen & Grampian Chamber of Commerce
