Carbonaceous shales in the Southern Uplands-Down-Longford Terrane accretionary prism had extremely high potential for hydrocarbon generation in the Lower Paleozoic. Structural thickening in the prism enhanced the rapid generation of oil. Shale horizons are separated by thick turbidites composed of low-permeability greywackes, so oil under high fluid pressure either pooled along shale bedding surfaces or migrated into fractured greywackes. Pooled oil became solidified to bitumen, which locally formed deposits on a scale of tonnes, mined as coal. The carbon-rich shale also sequestered large amounts of sulfur from seawater, which precipitated as pyrite firstly during early diagenesis, then further during fluid flow through the shale beds. The oil was also sulfur-bearing. Deformation focused on the shale beds during the evolution of the accretionary prism would have been closely related to the fluid flow which precipitated bitumen and sulfides. The palaeo-fluids were also anomalously rich in methane and hydrogen, similar to fluids venting from modern accretionary prisms. Supplementary material: details of localities searched for coal in Lower Palaeozoic, Southern Uplands-Down-Longford Terrane (locations shown in Fig. 6 ) are available at https://doi.org/10.6084/m9.figshare.c.6691597