Key facts
- Incoming UK Prime Minister Andy Burnham is expected to approve new oil and gas drilling in the North Sea.
- The plans involve approving drilling projects at the Jackdaw gas field and the Rosebank oil field.
- Adura, a joint venture between Shell and Equinor, operates both fields.
- Public consultations have been launched for the Jackdaw and Rosebank projects.
- Adura claims approving these sites will enhance energy security and boost UK oil output.
Incoming UK Prime Minister Andy Burnham is reportedly planning to approve new oil and gas drilling in the North Sea shortly after taking office. His team has requested that civil servants prepare plans for approving drilling projects at the Jackdaw gas field and the Rosebank oil field, located off the coast of Scotland. The plans also include expanding 'tie-backs,' which enable further drilling near existing fields.
The Jackdaw and Rosebank projects, operated by Adura, a joint venture between energy giants Shell and Equinor, have faced legal challenges, with previous approvals being overturned by courts. However, public consultations for both sites were launched on Thursday, potentially delaying formal approval until these consultations conclude.
Adura's chief executive, Neil McCulloch, stated that approving both sites would provide significant benefits to the UK, including enhanced energy security for the winter months. The company estimates that Rosebank alone could contribute around 10% of the UK's continental shelf oil output, helping to slow the decline in domestic production and improve the availability of refined products.
This potential policy shift is expected to draw criticism from environmentalists and some factions within the Labour party who oppose new drilling on environmental grounds. Conversely, the move is likely to be welcomed by trade unions and those on the right of the political spectrum. Sharon Graham, general secretary of Unite the Union, previously described the ban on new licences as "monumental political self-harm," while Chancellor Rachel Reeves indicated in April that she would support exploration at both sites.
An official suggested that approving these fields would not violate Labour's pledge to ban new exploration licences, as the grants were issued under the previous Conservative government. The final decision on ministerial appointments, including the energy secretary, will rest with Burnham, who is set to name his cabinet next Monday.