The minister went on: "We know that there is a great future in oil and gas, and the sector is no stranger to innovation, with the great strides the industry has taken helping to secure our place at the lead of the global industry.
"The awards made under this fund will help drive that innovation and preserve the vital infrastructure of the industry - the cables, pipes and platforms - to ensure they continue to operate safely and efficiently for the recovery of oil and gas reserves for decades to come."
Scottish Enterprise will help operate the new fund, with David Rennie of the enterprise agency stating: "Scotland's hugely successful oil and gas sector has a crucial role to play in our economic success and increasing and accelerating innovation in the industry, as highlighted in the industry-led oil and gas strategy document published earlier this year, will be key to this."
However, environmental body WWF Scotland accused the Government of "bending over backwards" to the oil industry.
Director Dr Richard Dixon claimed public funds should instead be spent trying to "create a low carbon future".