David Cameron announces £20m funding package for oil sector

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Prime Minister David Cameron says the City Deal for Aberdeen shows the UK government is "100% behind the oil and gas industry"

Prime Minister David Cameron has announced a £20m funding package to help the North Sea oil and gas sector.

During a visit to Aberdeen, he said the money would be used for further exploration, innovation, and skills development.

The package is in addition to the £504m announced earlier by the UK and Scottish governments.

That will be ploughed into improving the North East's infrastructure over the next 10 years.

The region has felt the brunt of a global fall in oil prices.

The cost of a barrel of Brent crude oil has decreased from more than $100 in January 2014 to less than $30 in January of this year.

During Prime Minister's Questions at Westminster on Wednesday, Mr Cameron said that the industry was facing significant problems.

He added that his government was "determined to help".

Separately, Scotland's First Minister Nicola Sturgeon has called on the UK Chancellor George Osborne to cut North Sea taxes.

'Workers need clarity'

Following news of the £20m fund, the UK's biggest offshore trade union, Unite, called on Mr Cameron to clarify the UK government's long-term plan for the oil and gas sector.

It said there had been more than 65,000 jobs lost in the last year and "turbulent market conditions" were continuing.

Unite's Scottish secretary Pat Rafferty said: "We are pleased that our political leaders are recognising the severity of the situation and investing in the north east economy, which has been hammered by the oil price slump.

"We've also heard calls from the Scottish government for further tax breaks for the offshore industry, but workers now need clarity from the prime minster about how he intends to safeguard employment, skills and also occupational safety."

He added that the workforce must be the "biggest beneficiaries" of all future investments and tax breaks.