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

Norwegian state oil company Equinor has expressed concern that the UK might become uninvestable if it fails to approve new oil and gas fields at Rosebank and Jackdaw. Anders Opedal, the company's boss, urged the UK to take a firm stance against rejecting these drilling projects. The warning emerged as the UK government prepares to decide on final approval for oil and gas extraction at Rosebank and Jackdaw, despite a pledge in the Labour party's election manifesto.

The UK government has stated that the decision will consider all relevant evidence, including environmental assessments and public input. With energy prices on the rise, the UK's energy security has come under scrutiny, with production expected to drop by half by 2035. Equinor anticipates that production levels will remain stable until the middle of the next decade.

Opedal remains optimistic that Prime Minister Andy Burnham's approach to oil and gas will lead to approvals, but expressed unease about the current limbo situation. He emphasized the importance of the UK producing its own oil and gas, highlighting the shared geology and the North Sea's historical significance. 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 the site was initially granted 25 years ago, with discovery in 2004 and the final investment decision in 2023. Both fields were previously approved by a Conservative government but faced a legal challenge due to concerns about climate impacts. The final decision now rests with Energy Secretary Miatta Fahnbulleh, following a public consultation that closed in August.

Adura, a joint venture between Equinor, Shell, and Aberdeen-based Ithaca, owns 80% of Rosebank. While some argue that new drilling won't lower energy bills and is a bad deal for Britain, the government maintains that the North Sea remains a vital national asset and will continue to play an important role in the energy system alongside transitioning to clean power.