Rosebank and Jackdaw decisions delayed until autumn

The UK government is expected to defer its decision on the Rosebank and Jackdaw oil and gas projects until September, according to recent reports. The consultation period for Rosebank, the United Kingdom’s largest untapped oilfield, concluded on Monday, one week after the public input window closed for the Jackdaw project. Both developments are now awaiting a final ruling from the Department for Energy Security and Net Zero regarding their updated environmental reporting before they can proceed. Industry observers suggest the delay may be longer than initially anticipated, with Westminster reportedly planning to avoid issuing an approval during the summer months.

The proposed postponement is attributed to concerns over the political optics of sanctioning new fossil fuel projects during a period of extreme weather, including heatwaves and wildfires. In response to these claims, a spokesperson for the Department for Energy Security and Net Zero reaffirmed the strategic importance of North Sea production. The official stated that the North Sea remains a vital national asset that supports employment, economic growth, and the country’s energy security. The spokesperson added that oil and gas will continue to play a significant role in the energy system for decades, operating alongside the transition to clean power to protect jobs and address the climate crisis.

A spokesperson for Number 10 told The Times that Energy Secretary Miatta Fahnbulleh will reach a conclusion through a quasi-judicial process. It was noted that she will consider all relevant evidence, including environmental assessments and representations received during the consultation period, before making a final determination. The process is designed to ensure that all statutory requirements are met before any licensing decisions are finalised.

Political reactions to the potential delay have been sharp. Douglas Lumsden, the Scottish Conservative MP for Aberdeen South, criticised the Labour government for what he described as an inexcusable delay in decision-making. He argued that the government is stalling on a decision regarding Jackdaw and Rosebank four years after the previous administration first approved the fields. Lumsden contended that no more time can be wasted and accused the prime minister of sitting on the fence during a period of major uncertainty for the North Sea industry and its workforce. He suggested that approving the projects would be a straightforward decision for a leader determined to reduce bills and safeguard energy security, warning that the current delays now cast doubt on whether the two fields will be operational in time for the winter season.

The Labour government has previously been tipped to support Jackdaw, a tieback to the existing Shearwater hub that is set to primarily produce gas. However, the position on Rosebank remains less clear following past comments by the current energy secretary and her predecessor, Ed Miliband, who have both expressed opposition to the major oil and gas project. Despite this, Prime Minister Andy Burnham has made positive remarks about the oil and gas industry since taking office. He has acknowledged that the country will continue to rely on oil and gas for some time and has called for a pragmatic approach to the energy transition. This stance comes as US President Donald Trump continues to pressure the UK government to open up the North Sea.

Conservative leader Kemi Badenoch has urged Burnham to approve the Adura projects, maintaining her party’s stance on the necessity of North Sea production. She argued that the decision should be made for the people of Aberdeen and the hundreds of thousands whose livelihoods depend on the sector, as well as for families struggling with rising energy costs. Badenoch emphasised that energy security is national security and called for a resumption of drilling activities.

Support for the projects has also come from Dale Vince, founder of Ecotricity and a prominent figure in the energy transition. Vince has thrown his support behind Rosebank and Jackdaw, provided there are changes to the UK’s oil and gas market structure. Speaking on News Night, he argued for price control of the North Sea, similar to the retail energy sector, to reduce bills. He published a report titled ‘Putting an arm around the North Sea oil and gas industry’, in which he advocated for contracts for difference to be signed with operators. Vince stated that this approach could protect jobs, maximise extraction, and eliminate the widely disliked windfall tax, thereby ending the narrative that net zero targets are incompatible with North Sea oil and gas production.