Labour weighs north sea oil field expansions despite green pledges

The Labour government is under mounting pressure as it considers approving limited expansions of existing North Sea oil and gas fields. While Labour’s manifesto has pledged a ban on new oil and gas licences, ministers and industry leaders are debating potential exemptions that could see “tiebacks” given the green light in the coming months.

Tiebacks refer to relatively small extensions to operating fields, using existing pipelines and infrastructure. Proponents in the energy sector estimate that these expansions could unlock resources totalling around 3.5 billion barrels of oil and gas, a crucial boost for jobs and tax revenues in a mature basin where output is in steep decline. The North Sea has already yielded more than 47 billion barrels, yet production last year alone was down by almost 9 per cent for oil and 10 per cent for gas.

Government insiders believe allowing tiebacks would satisfy the party’s promise to end new field licences while still “managing existing fields for the entirety of their lifespan”, as stipulated in the Labour manifesto. The result could allow the administration to maintain energy security and reduce reliance on imported gas from major exporters such as the US and Qatar.

Industry groups including Offshore Energies assert that as many as 1,000 jobs are at risk each month without continued investment, while trade union voices have warned against stalling the energy transition and risking both economic and energy goals. The GMB union has called any restriction on North Sea investment “madness”, highlighting the ongoing debate within Labour’s political base.

Environmental campaigners remain sceptical of the economic case for tiebacks, arguing that the underlying issue is the geology of an ageing basin rather than regulatory constraints. Campaigners are urging a more decisive shift towards renewables and investment in technologies such as carbon capture, hydrogen and offshore wind.

Labour’s recently introduced environment rules do allow for projects like Rosebank and Jackdaw to proceed, given their approval by previous governments. New guidance instructs ministers to weigh environmental impacts against economic benefits, highlighting the complexities in managing fossil fuel decline while supporting key industries.

A final government decision is expected this year after concluding a formal consultation. Whichever route is chosen, the outcome will signal how Labour balances climate responsibilities with the practical realities of the UK’s energy landscape.