---
title: "Labour cabinet divided over Rosebank oil project approval"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2026-10-27T07:21:38+00:00"
modified: "2026-10-27T07:21:38+00:00"
date: 2026-10-27
canonical: "https://stockmark.it/labour-cabinet-splitting-over-rosebank-approval/"
category: "Business"
categories: ["Business", "Government", "Oil Production"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/2026/10/labour-cabinet-divided-over-rosebank-oil-project-approval.png?fit=1536%2C1024&quality=80&ssl=1"
format: "news"
language: "en-GB"
---

# Labour cabinet divided over Rosebank oil project approval

**Published:** October 27, 2026
**Author:** Stockmark.IT Website
**Categories:** Business, Government, Oil Production
**Featured image:** ![Labour cabinet divided over Rosebank oil project approval](https://i0.wp.com/stockmark.it/wp-content/uploads/2026/10/labour-cabinet-divided-over-rosebank-oil-project-approval.png?fit=1536%2C1024&quality=80&ssl=1)

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A significant disagreement is emerging within the Labour cabinet regarding the approval of the Rosebank oil field. Reports indicate that ministers are split on whether to grant the project the necessary green light, with the Chancellor of the Exchequer, John Healey, understood to be in favour of proceeding. In contrast, Energy Secretary Miatta Fahnbulleh has opposed authorisation, maintaining her support for the UK government’s ban on new oil and gas licences. Although arguments persist over whether Rosebank’s permit constitutes a new licence following its overturning by a court, the ministerial divide remains a central issue in the ongoing deliberations.

Healey recently told ITV that he intends to establish a new two billion pound energy wealth fund using revenues from oil and gas projects. This statement suggests he envisions future income being derived from the Rosebank development. Business Secretary Jonathan Reynolds is also reported to be supportive of approving the project. While the Energy Secretary holds ultimate authority over the final decision, the Chancellor’s position may influence her judgement. Prime Minister Andy Burnham, who is rumoured to favour the project, could be called upon to resolve the conflict if the cabinet remains deadlocked.

With the Jackdaw gas field already approved, Rosebank is now the primary focus of the industry, which is watching for a decision by the end of the year. Jackdaw presented a simpler case for the Labour government as it produces mainly gas, which is less polluting than oil. It is a tieback to existing infrastructure, a category Labour has previously indicated it would allow. Furthermore, at a time of heightened energy security concerns, Jackdaw feeds gas directly into the UK system rather than sending oil abroad for processing. Rosebank, however, poses greater challenges for the government’s net-zero ambitions. Its emissions are estimated to be seven times higher than those of Jackdaw, making it a less appealing option for the Energy Secretary, who has previously stated that each application must be judged on its own merits in line with the UK’s climate obligations.

Located west of Shetland, Rosebank is the UK’s largest untapped oil and gas field. It is majority owned by operator Adura, a joint venture between Equinor and Shell, with Ithaca Energy holding a 20 per cent share. The project was originally approved under the previous Conservative government in 2022. However, its permit was overturned in 2025 as part of the Finch ruling, which sent the application back into the regulatory process.

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