The future of Britain’s largest untapped oil field, Rosebank, has been thrown in to doubt after the new government said it would not challenge a judicial review.
The decision affects the field which is just off the Shetland Islands, as well as Jackdaw, another untapped site 150 miles east of Aberdeen.
Legal challenges against the sites, managed by Norway-owned Equinor and Shell respectively, were brought by environmental campaign groups Greenpeace and Uplift.
The government confirmed this morning that it would not challenge the judicial reviews brought against development consent for the two fields.
The dropping of the challenge does not mean the licences have been withdrawn, it insisted, however.
This comes after a historic Supreme Court ruling in June saying emissions from fossil fuels must be considered in planning applications, as reported by Sky News.
Keir Starmer’s new Labour government, with former leader Ed Miliband as Secretary of State for Energy Security and Net Zero, has been criticised for its commitment to transitioning to net zero. It has been accused of moving too quickly and putting jobs on the line.
Rosebank is expected to produce up to 300m barrels of oil over its operational lifetime, with production expected from 2026/27.
In July there was confusion after the government denied it had banned new oil and gas licences, calling claims “a complete fabrication”.
Campaigners from Fossil Free London march from the department to Downing Street against the government, opposing Rosebank. Credit: Andrea Domeniconi/Fossil Free London
In an announcement this morning, the UK Minister for Energy Michael Shanks said: “This government is committed to making Britain a clean energy superpower, helping to meet our first mission to kickstart economic growth.”
While we make that transition, the oil and gas industry will play an important role in the economy for decades to come.”
As we support the North Sea’s clean energy future, this government is committed to protecting current and future generations of good jobs as we do so. We were elected with a mandate to deliver stability, certainty and growth. Every action we take will be in pursuit of that.”
We will consult at pace on new guidance that takes into account the Supreme Court’s ruling on Environmental Impact Assessments to enable the industry to plan, secure jobs, and invest in our economy.”
Shell and Equinor, which is owned by the Norwegian state, are still able to drill at the sites, and their licences have not been revoked, but they will now have to defend them from legal challenges.
A Shell spokesperson said: “Jackdaw was approved in 2022 and we are carefully considering the implications of today’s announcement by the Government.
“We believe the Jackdaw field remains an important development for the U.K., providing fuel to heat 1.4 million homes and supporting energy security, as other older gas fields reach the end of production.”
Equinor said in a statement, that the firm “welcomed regulatory approvals for the Rosebank development in 2023.”
We’re currently assessing the implications of today’s announcement and will maintain close collaboration with all relevant stakeholders to advance the project. Rosebank is a vital project for the UK and is bringing benefits in terms of investment, job creation and energy security.”