Millions of pounds in funding announced for the North Sea oil and gas industry

Philip Hammond has announced a £5 million funding for oil and gas exploration in the North Sea.

The Chancellor also pledged the ''broad shoulders'' of the UK would continue to support Scotland.

He stressed North Sea oil was a ''vital'' part of the British economy, and the extra cash could help boost job prospects in Aberdeen.

The Oil and Gas Authority (OGA) will use the money to survey under-explored areas of the UK Continental Shelf in a bid to find undiscovered oil fields.

Mr Hammond, who is visiting Aberdeen and Dundee during a trip to Scotland, said: ''The oil and gas industry remains vital for the Scottish economy and the UK as a whole. The #5 million funding I am announcing will help exploration to find potential new deposits, and boost prospects for jobs in Aberdeen and the surrounding area.

This continues the UK Government's extensive package of tax and funding support for the industry and the wider Scottish economy.''

UK Energy Minister Richard Harrington said: ''North Sea oil will continue to fuel growth and jobs across Scotland and the rest of the UK, with an estimated 10 to 20 billion barrels still remaining.

I was in Aberdeen last month and saw first-hand the work of the Oil and Gas Authority which we established to be a strong, independent regulator focused on maximising economic recovery.

The sector continues to have the full support of the UK Government, confidence is returning, and today's announcement recognises there are great opportunities for further exploration.''

The Chancellor also met business leaders in Dundee, a city being transformed by the regeneration of the waterfront area, including the construction of the new V&A museum there.

The city has also become a hub for the life sciences industry - with both this and the building of the new museum being supported by UK funding.

Mr Hammond said: ''I've seen today how Dundee has benefited from our life sciences and creative sector funding.

I now look forward to progress being made on the Tay Cities Deal, which will follow the £1 billion already committed by the UK to Scotland's City Deals so far.

This government will continue using the UK's broad shoulders to provide Scotland with the skills and support it needs to thrive in the future.''n