The Aberdeen region has been given a £504 million (US$727 million) boost as it faces up to the oil price crisis.

The funding will be paid over the next five to 10 years to improve infrastructure and attract jobs.

A £250 million (US$ 361 million) “City Deal” for Aberdeen will see the U.K. and Scottish governments jointly invest in the area. Separately, the Scottish government has promised an extra £254 million (US$ 367 million) for Aberdeen and Aberdeenshire. Scottish ministers have announced investment to improve rail links and other infrastructure projects.

The City Deal will address a number of proposals from the region including a new energy innovation centre, supporting the industry to exploit remaining North Sea reserves, as well as towards the expansion of Aberdeen harbour, enabling the city to compete for decommissioning work.

Secretary of State for Scotland, David Mundell, said, “Oil and gas is a crucial sector, not just for the northeast of Scotland but for the whole of the U.K. I know it’s a very tough time for people who work in the industry and their families, and I am determined that the U.K. government will do what it can to support them.

“We need action, which will help in the short, medium and long terms—building a bridge to the future of the North Sea; helping the U.K.’s oil and gas industry to export its world-class expertise around the globe; and encouraging diversification of the economy to create new opportunities in other sectors too.”

Oil & Gas UK’s CEO Deirdre Michie added, “As the U.K. offshore oil and gas sector works through these challenging times to restore its competitiveness by improving efficiency, we value the support offered by government and enterprise agencies.

“Scottish Enterprise’s work to make tailored advice available to firms through the downturn, encourage research and development and identify the funding issues being experienced by the sector will also help bolster the business and equip companies for a competitive future.”

A new Ministerial Group on Oil and Gas, chaired by Energy and Climate Change Secretary Amber Rudd, also has been set up to reiterate the U.K. government’s commitment to supporting the oil and gas industry and those who work in it. The group will coordinate the U.K.’s response to the oil price and focus on vital issues such as exports, skills and investment.

The group will produce a U.K. oil and gas workforce plan in the spring. This will focus on what steps the government will take to support those who might lose their jobs in the oil and gas sector, and set out how government and industry can help these skilled workers move into other sectors, including other energy-related infrastructure projects.