Anders Opedal, CEO of Equinor, stated that the company may reconsider its future investments in the UK if new oil and gas fields at Rosebank and Jackdaw are not approved. He expressed concern about the UK's future investability, saying, "The question will be: is the UK investable in the future? I hope it will not come to that." Equinor, a Norwegian state oil company and part owner of the sites, is awaiting the UK government's decision on whether to grant final approval for extraction at these fields, despite a ban pledged in Labour's election manifesto. The government has indicated that any decision will consider all relevant evidence.
The warning comes amid rising energy prices and discussions about the UK's energy security, with forecasts indicating that UK production could halve by 2035. The UK currently relies on Norway for half of its gas needs, while Norway continues to issue new licenses for oil and gas exploration in its North Sea waters. Equinor anticipates that production levels will remain stable until the middle of the next decade.
Opedal expressed confidence in Prime Minister Andy Burnham's commitment to a "pragmatic approach to oil and gas," suggesting that both projects may receive approval, although he acknowledged the current uncertainty as "an uncomfortable position to be in." He emphasized that the UK has the potential to produce more of its own oil and gas, stating, "It's a political choice."
Rosebank, located about 80 miles northwest of the Shetland Islands, is the UK's largest undeveloped oil and gas field, estimated to hold up to 500 million barrels of oil and gas. Opedal noted that the exploration license for Rosebank was granted 25 years ago, with the discovery made in 2004 and the final investment decision in 2023.
Both Rosebank and Jackdaw received initial approval from the former Conservative government but faced delays due to a Scottish court ruling after environmental groups raised concerns about the climate impact of the projects. The final decision now rests with Energy Secretary Miatta Fahnbulleh, following a public consultation that closed in August.
The projects are operated by Adura, a joint venture between Equinor and Shell, with Aberdeen-based firm Ithaca owning 20% of Rosebank. Adura has indicated that if approval is granted soon, Jackdaw could begin delivering gas to UK homes by this winter, as construction is reportedly 99% complete.
Tessa Khan, executive director of Uplift, criticized the new drilling at Rosebank, stating it would not reduce energy bills and would primarily benefit Equinor and the Norwegian government. She remarked, "It's overwhelmingly oil for export – but it will make Equinor and its part-owner, the Norwegian government, richer, while Britain is left with high energy bills and a declining workforce." Khan also noted that Labour's climate credibility is at stake.
A government spokesperson reaffirmed the importance of the North Sea as a national asset, stating that oil and gas will continue to play a significant role in the energy system for years to come, alongside a transition to clean power. The spokesperson added that any decision would consider environmental assessments and public feedback from the consultation process.