John Swinney is considering dropping Nicola Sturgeon’s policy of opposing new oil and gas licenses in the North Sea in a bid to retain support for the SNP.

The First Minister said an “exploration” of the policy is underway amid fears by senior figures it is costing the party support in the north east of Scotland.

Ms Sturgeon, who signed the Bute House Agreement to bring the Scottish Greens into Government in August 2021, announced a ‘presumption’ against new developments to help meet climate change targets.

The position was largely symbolic as new licences are reserved to Westminster, but it sent a powerful signal to the energy industry.

READ MORE: Scottish Government quietly axes national recycling target

Humza Yousaf also endorsed the stance when he succeeded Ms Sturgeon but Mr Swinney appears set for a U-turn.

Speaking to the Mail on Sunday, Swinney said: “I want the Scottish Government to work closely and carefully with the oil and gas sector to ensure its sustainability.

“We need the oil and gas sector to contribute to the transition to net zero, so it has to be strong enough and robust enough to do that.

"In addition to that, I want to make sure that the sector is able to contribute to the objectives of energy security that we’ve set out in our policy programme.

READ MORE:  MSPs to consider recall petition bid after Matheson case

“It’s an exploration of our position, that’s how I would describe it. The Scottish Government wants to work with the oil and gas sector to ensure its fiscal sustainability.”

Senior SNP figures such as Westminster leader Stephen Flynn are believed to support a rethink.

The future of oil and gas exploration in the North Sea is shaping up to be a key general election in Scotland.

Sir Keir Starmer’s Labour will honour existing contracts, but not back new licences, a position Mr Flynn claims will cost tens of thousands of job.

READ MORE: Hundreds of thousands of viewers to tune into STV election debate

Labour would also increase the windfall tax of energy giant profits while the SNP is against a rise.

Mr Swinney told journalists at the weekend a Labour Government would “lead to the devastation of employment” in the industry in the north-east.

He said: “I think the Labour Party has got a real problem in the north-east of Scotland because their policy programme will lead to the devastation of employment in the north-east of Scotland through the proposals that they are bringing forward, which will have a significant and damaging impact on employment within the oil and gas sector.

“And what I want to make sure of is that people understand the dangers of Labour’s plans and the damage that could be done to employment.

“And, you know, we’ve got a commitment to manage to transition to net zero and that’s what the SNP will work with the oil and gas sector to deliver because we’ll need the oil and gas sector to contribute to our economy, but we will also ensure that there is the support that that sector can give, to enable the transition to renewables to be undertaken”.

He added: “There’s a lot of independent commentary that indicates that the plans of the Labour Party and particularly their tax grab that is being perpetuated by the Conservative and Labour parties is having a real damaging effect on investment in the oil and gas sector, which we need to sustain the sector, but we also need to ensure that that sector can play a part in the transition to net zero which is fundamental to the approach that we’ve got to take as a country”.

Scottish Conservative candidate for West Aberdeenshire and Kincardine Andrew Bowie said: "John Swinney must think voters in the North East are buttoned up the back.

"The SNP have repeatedly turned their back on the oil and gas sector and the tens of thousands of workers it employs.

"They refused to back Cambo. They refused to back Rosebank. They went into coalition with the extremist Greens who would shut down the industry overnight.

"The SNP - like Labour - are no friends of the sector and this is nothing but shameless spin from John Swinney. 

"Only the Scottish Conservatives can be trusted to stand up for the oil and gas sector, recognise its importance to Scotland's economy and its role in achieving net zero ambitions."

Ian Murray, Labour’s shadow Scottish secretary, said: “John Swinney is resorting to increasingly desperate and dishonest attacks on Labour’s plans because the SNP has no record to stand on and no ideas of its own."

The Scottish Government draft energy plan, published in 2023, included a presumption against new oil and gas drilling licences, and a just transition to clean renewable energy in Scotland’s efforts to reach net zero.

Mark Ruskell, the Scottish Greens climate spokesman, criticised the government over considering abandoning this commitment.

“The science is clear. Any shift away from a presumption against new oil and gas exploration would be an act of climate betrayal. It would undermine years of progress we have made in Scotland and send a terrible message to young people and future generations," he said.

“There is so much potential in our renewable sectors, and that is where we need our focus to be, not on trying to extract even more oil from our North Sea. 

“When the previous First Minister committed to opposing new developments it represented a sea change in Scottish politics. Here was one of the first oil-rich states saying that enough was enough and that we have to stop new drilling. We need to hold to that commitment not just today but going forward.

“Over the last few months we have seen the SNP trying to face both ways on fossil fuels. It’s not good enough. We are in a climate emergency and people deserve clarity about what Scotland is doing to tackle it. 

“Only a vote for the Scottish Greens on July 4 will help us to take the action that is needed.”