Faroe industry group warns Rosebank rejection would end Atlantic Margin oil hopes

The Faroes Energy Industry Group has warned that a decision against the Rosebank oil development would constitute a disaster for both the United Kingdom and the Faroe Islands. The trade body argues that rejecting the project would effectively close the door on future oil and gas production across the entire Atlantic Margin, including the waters between the Faroe Islands and Shetland. With the public consultation on Rosebank now concluded, attention has turned to the UK government, which is expected to announce its decision within a matter of weeks.

Jan Müller, managing director of the Faroes Energy Industry Group, stated that if Rosebank is not approved, it is highly likely that other developments currently in planning stages will also be denied. He cited several projects, including Cambo, Tornado, Suilven, and Clair South, as well as numerous licences located north and east of the Faroese border. Müller contended that a negative outcome for Rosebank would signal the end of an oil and gas future in the region. He described such a decision as a disaster not only for the UK but also for the Faroe Islands, where it would undermine opportunities to restore the foundations for oil exploration and supply services.

The significance of the Rosebank project extends beyond the immediate site, as it is the second project operated by Adura in UK waters awaiting government sign-off. The consultation for the Jackdaw tieback project, which connects to the Shearwater hub, also closed last week. While Jackdaw aligns with the UK government’s previous indication of willingness to approve near-field tiebacks to existing infrastructure, Rosebank does not fit this category. Its situation is comparable to that of Ithaca’s Cambo development, which has also faced controversy. The Labour Party has previously stated that it would honour all existing licences awarded before it formed a government following the 2024 general election.

Dave Whitehouse, chief executive of Offshore Energies UK, emphasised the importance of Rosebank to British businesses. He argued that approving the UK’s largest untapped oilfield would send a crucial signal to investors that the country remains a credible location for energy development. Whitehouse noted that such a decision would support economic growth, security of supply, and emissions reduction. He highlighted that oil and gas currently provide around 75% of the UK’s energy, keeping vehicles moving, planes flying, and homes warm. Whitehouse warned that failing to produce this energy domestically under a tightly regulated regime would not end demand but would instead lead to increased imports, often with a higher carbon footprint, while shifting jobs, taxes, and industrial value overseas.

The Faroe Islands, which installed a new government earlier this year, has placed a renewed focus on the exploration and production of domestic oil and gas. Prime Minister Beinir Johannesen has targeted a fresh start for the industry, aiming to find another leg for the economy to stand on. In April, the Faroese government stated its intention to step up efforts to encourage foreign oil companies to explore in the region. Johannesen noted that knowledge of the Faroese continental shelf is at its highest level ever, and that improved technology and high oil prices have led to renewed exploration activity.

Müller argued that the successful delivery of projects like Rosebank would make it more attractive and profitable to begin production from discoveries on the Faroese side of the border. He suggested that such developments would benefit both the Faroese and UK supply chains, create work for Faroese supply companies, and foster further cooperation between the two countries. The decision on Rosebank and Jackdaw will serve as a litmus test for how the UK government intends to interact with the oil and gas industry going forward. The outcome will have significant implications for the energy landscape in the North Sea and the broader Atlantic Margin.