UK ‘uninvestable’ if North Sea projects are blocked
The UK will be uninvestable in the eyes of most energy companies if the government blocks the Jackdaw and Rosebank oilfields in the North Sea, the boss of Norway’s state-run oil and gas firm has warned. Equinor chief Anders Opedal said his firm could pull out of future projects in the UK if the two [...]
Norway's Equinor boss warns UK energy sector could become "uninvestable" if the government blocks its Jackdaw and Rosebank oilfields in the North Sea. The two oil and gas fields have been stuck in a legal review for years and face a further delay if they are not approved before 2027, according to Equinor's Anders Opedal. Opedal has called the lack of approval a "major setback" that would make energy companies question the UK's attractiveness for investment.
Last year, a court deemed the licenses for Jackdaw and Rosebank unlawful because they did not fully consider their environmental impact. Despite Labour Party leader Andy Burnham's more open approach to North Sea energy, the projects are still in limbo. Opedal praised Burnham's shift in tone but emphasized the uncomfortable position the industry is in.
Both Jackdaw and Rosebank could significantly contribute to UK gas demands if approved, with Adura, the owner of Jackdaw, stating it could start production within weeks. Rosebank, the UK's largest untapped energy reserve, is estimated to hold up to 500m barrels equivalent of oil and gas. The regulator responsible for the consultation has shared its recommendation for Jackdaw but is still deciding on Rosebank.
The timing of approval has become a contentious issue, with some arguing it is crucial for national energy security and addressing fiscal concerns, while others claim it contradicts the UK's climate targets.
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