UK risks being 'uninvestable' if new oil and gas fields not approved, warns Equinor

Norwegian oil giant Equinor has expressed concern that the UK could become an "uninvestable" market if new oil and gas fields at Rosebank and Jackdaw are not given the green light. Anders Opedal, the company's head, said the UK's future investability is at stake and hopes the situation doesn't deteriorate. The warning comes as the government prepares to decide on final approval for drilling at the two sites, despite a pledge from Labour's election manifesto to ban new oil and gas extraction.

The government's decision will weigh various factors, including environmental assessments and public input.

The UK, which already relies on Norway for half its gas needs, is seeing its production forecast to drop by half by 2035. Equinor anticipates production at these sites will remain steady until the middle of the next decade. Opedal remains hopeful that Prime Minister Andy Burnham's "pragmatic approach" to oil and gas will see both projects approved, but acknowledges the current uncertainty is uncomfortable. He emphasizes that the UK could produce more of its own oil and gas, citing shared geology between the two nations.

Rosebank, the UK's largest undeveloped oil and gas field, is estimated to hold up to 500 million barrels of oil and gas. The exploration license for Rosebank was granted 25 years ago, with discovery in 2004 and the final investment decision made in 2023. Despite initial approval from a Conservative government, legal challenges from environmental groups delayed the project.

The final decision now rests with Energy Secretary Miatta Fahnbulleh. Both fields are operated by Adura, a joint venture between Equinor and Shell, with Ithaca holding a 20% stake. If approval is swift, gas from Jackdaw could begin reaching UK homes this winter, as construction is 99% complete.

However, environmental advocates argue that new drilling at Rosebank won't lower energy bills and is a poor deal for Britain. It primarily benefits the company and its Norwegian owners, leaving the UK with high energy costs and a shrinking workforce. Labour faces criticism over its climate credibility. The government maintains that the North Sea remains vital, emphasizing that oil and gas will continue to play a role in the energy system for decades, alongside a transition to clean power to address the climate crisis.