Scotland’s First Minister is “very concerned” by reports that oil giant BP is considering leaving the North Sea.

Bloomberg reported the firm had begun an internal review of its North Sea operations, though no final decision had been made.

Speaking to the Press Association on Saturday during a campaign stop in Glasgow, John Swinney put the blame squarely on the UK Government and its windfall tax on oil and gas.

“I’ve seen the reports and I’d obviously be very concerned about that,” the First Minister said.

“What will be driving this is the hostile taxation approach of the United Kingdom Government through the energy profits levy, and I’ve told the Prime Minister to his face that the energy profits levy is causing significant economic damage to Scotland and the North Sea oil and gas sector.

“It’s accelerating the decline of the sector and I made it clear to the Prime Minister he should remove that energy profits levy, and the speculation about BP I think should prompt early action from the UK Government.”

But Sir Keir Starmer, the First Minister claimed, was distracted by pressure on his position as a result of the scandal surrounding the hiring and firing of former US ambassador Lord Peter Mandelson.

“But, as with so many questions of the challenges that we face, the Prime Minister is distracted by his own failures and can’t take the proper actions to protect jobs and employment within Scotland, and that’s an example of the weakness and the failure of a Labour Government,” Mr Swinney said.

The reports come after UK Energy Secretary Ed Miliband described BP’s profits – which tripled in the first quarter of this year – in a now deleted post on social media as “morally and economically wrong”.

The UK Government has been contacted for comment.

Prime Minister Muhammad Shehbaz Sharif on Saturday directed authorities to formulate a comprehensive strategy to stabilise electricity tariffs.

The orders were given while chairing a meeting on energy sector reforms.

During the meeting, the prime minister stressed the need to provide relief to both industrial and domestic electricity consumers and instructed officials to take concrete measures in this regard. He also called for significant improvements in the power transmission system to reduce line losses.

Highlighting the importance of modernisation, the premier stressed the use of advanced technology in the energy sector and ordered the promotion of renewable energy projects to address the country’s energy shortfall. He further underscored the need to enhance digital facilities to make electricity bill payments more convenient for consumers.

PM Shehbaz ordered the continuation of strict measures against electricity theft and reiterated that an uninterrupted energy supply was essential for promoting industrial growth. He stated that providing relief to domestic consumers remained one of the government’s top priorities.

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He added that reforms in the energy sector would be implemented while keeping in view the broader interests of the public and industry. During the meeting, officials presented recommendations regarding electricity consumption for both domestic users and the industrial sector.

The meeting was attended by Deputy Prime Minister and Foreign Minister Muhammad Ishaq Dar, Finance Minister Muhammad Aurangzeb, Minister for Economic Affairs Ahad Khan Cheema, Minister for Information and Broadcasting Attaullah Tarar, Minister for Power Sardar Awais Ahmed Khan Leghari, Minister for Petroleum Ali Pervaiz Malik, Minister of State for Finance Bilal Azhar Kayani, Special Assistant Haroon Akhtar, and senior officials from relevant institutions.

The earlier plan, which would have seen the US government take effective ownership of as much as 90% of the airline, faced stiff opposition from Wall Street, Capitol Hill and even a member of Trump’s own cabinet. Transportation Secretary Sean Duffy told Reuters a rescue would amount to tossing “good money after bad”.