LISTEN: Chancellor Says Culzean Gas Field Shows The North Sea Has "A Long Future"
The Chancellor was in Aberdeen today to welcome the news that the Culzean Gas Field has been given the green light to start production.
It won't begin producing gas until 2019 - but once it does, it is expected to provide enough gas to meet 5% of the UK's demand.
It holds reserves equivalent to about a quarter of a billion barrels of oil.
Oil firm Maersk said the project will safegaurd an estimated 6,000 UK jobs, and create more than 400 new posts.
Our reporter Hope Webb spoke to George Osbourne on his visit to the Granite City.
Listen to that interview here: