The Energy Secretary yesterday met with the major oil companies to discuss the new taxes on oil and gas extraction in the North Sea

Executives from the big oil companies are said to have had “Full and Frank discussions” with Chris Huhne, in a bid to get their concerns over last week’s budget recognised.

They have warned that tens of thousands of jobs could be at risk under the new higher tax rates that were set by the Chancellor George Osborne to fund the 1p reduction in fuel duty.

The meeting took place at PILOT – a joint programme between the government and the oil & gas industry designed to get the most out of the UKCS (UK Contintental Shelf).

The oil companies have threatened to halt their development projects in the North Sea, with Statoil already announcing it has stopped one such development due to the tax hike.

Following the meeting Chris Huhne said:

“They expressed their concerns about the impact of the Budget on investment in the North Sea oil and gas sector and we’re listening to that”.

The Energy Secretary has already expressed views that the UK needs to become less dependent on foreign oil.