A £350m expansion of Aberdeen Harbour will create up 2300 jobs, it is claimed.

The project, due to be completed in 2020, includes new facilities for cruise ships and North Sea decommissioning, an industry expected to be worth £17bn over the next decade.

The revamped harbour will contribute an estimated £1bn to the local economy each year by 2035 through increased tourism and industrial traffic.

On Monday, the First Minister announced Scottish Enterprise will contribute £11.7m to the expansion, on top of £175m from the European Investment Bank.

Another £11m is being contributed by the Aberdeen City Region Deal, a joint agreement between the UK and Scottish governments.

Speaking in Aberdeen, Nicola Sturgeon said: "Aberdeen Harbour is Scotland's main oil and gas port and one of Europe's leading marine support centres for offshore energy.

"This funding will open up significant opportunities to diversify and exploit the rapid growth in cruise tourism and the renewables markets in Scotland.

"We are already seeing Scottish-based firms seizing decommissioning opportunities, and we are committed to supporting Scottish industry to win further valuable contracts."

Aberdeen Harbour chief executive Colin Parker said the funding would help "future-proof" the port, where 2300 jobs are expected to be created by 2026.

"The facilities developed will transform the port's ability to accommodate the trend for larger vessels we are witnessing across a whole range of industries, thereby encouraging commercial diversification and future-proofing the port's ability to support large scale marine operations," he said.