The chief executive of one of the North Sea’s biggest engineering firms has urged Scots voters to reject independence.
Amec boss Samir Brikho said a Yes vote in the referendum in September would create uncertainty for business at a time when the basin required “billions of pounds” of investment to maximise oil and gas recovery. It also faces similar costs to dismantle rigs coming to the end of their lives, he said.
Mr Brikho’s intervention follows warnings from Shell, BP and the Weir Group about the risks of splitting up the UK.
But last night Scottish Energy Minister Fergus Ewing insisted independence would finally give the industry the attention it needs.
Amec, which provides engineering and project management services for the oil and gas, nuclear and mining industries, employs 4,500 workers in the North Sea. In an interview yesterday, Mr Brikho said: “For me, there is no question. I believe in the UK – that being together is a better outcome for both the Scots and the English.”
He also warned of the growing liabilities associated with shutting down old rigs after 40 years of drilling in the North Sea.
“A lot of installations have come to an end-life status,” he said. “What are we going to do with the platforms out in the North Sea? Leave them there, or take them back home?
“You can’t just cut the top. You have pipes filled with oil. It will never happen unless you say ‘If you take home two or three, we’ll give you a tax break on your next investment’.”
He added that the closure costs would run to “billions and billions”.
“I think there will be business for the next 50 years,” he said.
Mr Ewing said he welcomed all contributions to the debate on Scotland’s future, but insisted a Yes vote would be good for the industry.
“Amec does of course already operate in around 40 countries all over the world,” he said.
“As part of the UK, we have had 16 changes to the fiscal regime in the North Sea in 10 years, and 14 oil ministers in the last 17 years – three in the last four years. Meanwhile, the new ‘bareboat charter’ tax measure – introduced despite opposition from the industry and the Scottish Government – will have a detrimental impact on exploration activity and damage investor confidence.”
By contrast, Mr Ewing said, an independent Scotland with full control of its economy and resources would offer an attractive and stable environment for businesses in the offshore and other sectors.
“The Scottish Government plans that decommissioning tax relief in an independent Scotland will be provided in the manner and at the rate currently provided through the current North Sea fiscal regime,” he added.
“This will provide long-term certainty for the industry.
“Oil and Gas UK estimate that £40.6billion (in 2013 prices) will be spent on decommissioning over the period to 2040. This presents a major opportunity – if we grab it – to secure and create thousands of jobs for the people and economy of Scotland.”
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