UK to launch review of its oil and gas industry

London - Britain will launch a review to identify key risks to oil and gas production in response to the collapse in oil prices, after oil majors BP and ConocoPhillips said they were cutting more than 500 jobs in their North Sea operations.

Britain's North Sea oil and gas sector employs more than 400 000 people and has generated in excess of $200bn in tax revenue for the government.

But there are growing pressures on the sector after oil prices slumped almost 60% over the past month, leading to job cuts at BP, ConocoPhillips and other majors.

"The oil and gas industry is used to volatile prices in world markets and will get through the latest downturn as it has in the past," said Energy Secretary Edward Davey in a statement on Thursday.

"Given the huge value of the UKCS (UK Continental Shelf) to the nation and the relatively high cost base that it has, I am concerned to make sure that it does so in the best possible shape for the future," Davey added.

Davey said the head of Britain's Oil and Gas Authority, Andy Samuel, would lead the review and would present his findings to the government by the end of February.