UK Approvals for North Sea Oil and Gas Hang in Balance

Approvals for oil and gas drilling at the North Sea sites Jackdaw and Rosebank have faced delays due to government processes and bureaucratic wrangling, according to Prime Minister Andy Burnham. Speaking to MPs, Burnham stated that he would adopt a pragmatic approach regarding fossil fuel drilling, following calls from energy executives to move forward with the two sites.

The Jackdaw and Rosebank projects, which were previously blocked by Scottish courts on environmental grounds in 2024, are operated mainly by Shell and Equinor. Energy Secretary Miatta Fahnbulleh is expected to issue a decision on the drilling proposals within weeks after public consultations concluded in August. Fahnbulleh must weigh the growth impacts against environmental commitments.

Economic Impact and Industry Warnings

A report compiled by Public First and commissioned by Adura, the joint venture between Shell and Equinor, indicated that the two fields could contribute 35 billion pounds to the UK economy between 2026 and 2035. Additionally, the report projected 12.1 billion pounds in tax revenues over the next decade, surpassing previous estimates.

Energy companies have warned that prolonged delays risk diminishing the UK's attractiveness to foreign investors. Equinor chief executive Anders Opedal noted that failing to approve the developments would constitute a major setback, emphasizing that the company has applied for consent twice under strict regulatory frameworks.

Key facts

• Projects involved: Jackdaw gas field and Rosebank oil field near Aberdeen, operated mainly by Shell and Equinor.
• Economic projection: Up to 35 billion pounds added to the UK economy and 12.1 billion pounds in tax revenues by 2035.
• Decision timeline: Energy Secretary Miatta Fahnbulleh is expected to make a final decision within weeks.
• Previous status: Both projects were approved by the former Conservative government before being blocked by Scottish courts in 2024.