The Scottish Government does not support a potential ban on new oil and gas developments, John Swinney has said.

The UK Government announced its draft Energy Independence Bill on Wednesday, which would put into law the ban on new oil and gas exploration in the North Sea.

The announcement drew the ire of both industry and the Prime Minister’s political opposition.

Speaking during First Minister’s Questions on Thursday, John Swinney said his Government does not support the ban, believing new developments should be subject to climate compatibility tests.

Under questioning from Reform UK’s leader in Scotland Malcolm Offord, the First Minister said: “The Energy Independence Bill that was introduced by the United Kingdom Government brings together a number of measures that the Scottish Government supports.

“But we do not support the provisions of that Bill in relation to the position on the granting of new licences for the exploration of new oil and gas fields, for the simple reason… that any particular applications need to be considered in relation to their impact on our carbon reduction targets and given the fact that we are going to be using oil and gas for years to come.”

The Scottish Government’s position on fossil fuels has shifted in recent years, from former first minister Nicola Sturgeon’s presumption against new oil and gas to the current stance.

Ms Sturgeon laid out her position in the Government’s draft energy strategy, which has not yet been finalised, with suggestions it could be early 2028 before the complete document is released.

Lord Offord accused the First Minister of a U-turn on his previous position on oil and gas, saying he was “delighted” with the shift.

He added: “It’s time now to re-industrialise our country again, to re-energise our country again, to get our people back to work and loud and proud again.

“We cannot do that with the most expensive energy in the western world, we are floating on a sea of affordable and secure oil and gas – it is madness to shut down the North Sea.

“So let me ask the First Minister again, why has he not fought tooth and nail to keep the North Sea open? It is Scotland’s oil, why has John Swinney abandoned Scotland’s oil?”

Responding, the First Minister said £2 billion would flow into the Treasury in tax revenues from the North Sea, accusing the UK Government of cutting Scotland’s budget by £650 million in real terms.

Scottish Conservative leader Russell Findlay also pushed the First Minister on oil and gas, asking if he supports the Rosebank oil field near Shetland – the same question he asked five times last week.

Mr Swinney again said any approvals must be assessed for the impact on emissions.

On the Energy Independence Bill, Mr Swinney asked the First Minister if he would whip SNP MPs to vote against the plan.

Mr Swinney replied: “We now see a very interesting pattern emerging in this Parliament – it’s the merger of the Conservative Party and Reform, because what Russell Findlay has just asked me is exactly what Malcolm Offord has just asked me, and I’ve set out the Government’s position.

“There are measures in the Energy Independence Bill that the Government supports because they will help ensure that individuals in Scotland are lifted out of fuel poverty and that we can have further investment and support to enable the schemes that the Government is taking forward to ensure that more renewable capacity can be taken forward in this country.

“But the measures in relation to oil and gas developments, the Scottish Government does not support, for the reasons that I have set out already to Russell Findlay and to Malcolm Offord.”

Mr Findlay accused the First Minister of “desperate deflection”, adding: “They should vote against Labour’s drilling ban.

“We back new drilling, we’d extract every valuable drop of North Sea oil and gas for Scottish jobs, lower bills and energy security.”

Katherine May, the head of Oxfam Scotland, hit out at Mr Swinney’s position.

“The First Minister knows there is no such thing as a climate-compatible new oil and gas field,” she said.

“These tests are increasingly being used to avoid admitting that reality.”

A spokesperson for the Department for Energy Security and Net Zero said: “We’re delivering our manifesto commitment to end new licences to explore new North Sea oil and gas fields, while backing existing fields for their lifetime.

“Oil and gas will remain part of Britain’s energy mix for decades to come.

“Last month, we gave the green light to Jackdaw, an already-licensed gas field that will strengthen our energy security, protect hundreds of jobs and boost domestic gas production by around 6% at its peak.”