Three major oil and gas companies are poised to acknowledge that the UK government committed a significant legal oversight when granting licences for two substantial offshore developments, marking a crucial moment for future fossil fuel projects in British waters.
Shell, independent producer Ithaca, and Norwegian energy giant Equinor will maintain their right to proceed with the Rosebank and Jackdaw projects, despite admitting to the procedural error. The case centres on environmental impact assessments that failed to consider emissions from the eventual burning of extracted fuels, focusing solely on extraction-related emissions.
The judicial reviews, brought forth by environmental organisations Greenpeace and Uplift, could potentially lead to the projects’ termination. The hearing, scheduled for four days at Scotland’s Court of Session in Edinburgh, comes after the UK government’s August decision to withdraw from contesting the review.
The Rosebank project, situated 80 miles northwest of the Shetlands, represents a £3.8 billion investment from Equinor and Ithaca. Shell’s Jackdaw development aims to produce natural gas condensate, a lightweight hydrocarbon product essential for UK energy security.
The legal challenges follow a landmark UK Supreme Court ruling in the Sarah Finch case, which mandated that environmental impact assessments for oil and gas facilities must consider the effects of burning the extracted products. The companies’ defence strategy hinges on arguing that their assessments were conducted in good faith under pre-Finch ruling interpretations of the law.
Philip Evans, representing Greenpeace UK, has accused the oil companies of attempting to mislead the public, courts, and government, calling for an immediate halt to what he describes as “reckless and unlawful” projects. The court’s decision, expected to take several weeks, could range from complete project cessation to modifications in project scope or governmental reassessment requirements.
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