The UK Labour Government has decided not to oppose a legal challenge by environmental organisations aimed at halt the development of the Rosebank oilfield in the North Sea.
The organisations claim the project violates the UK’s commitment to achieving net-zero emissions.
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However, the legal action will not see the see the licences for the Jackdaw and Rosebank fields, situated some 200 miles north-west of the Shetland Islands, automatically revoked. The licenses were granted by the previous Conservative Government.
The government also said that not reviewing the Rosebank project, which has an approximate total production capacity of 121,000 barrels of oil equivalent per day, will “save the taxpayer money”.
Later this year, the government plans to seek input on enacting its manifesto-outlined policy of refraining from granting new oil and gas licences for exploring new fields.
The UK Government states that oil and gas extraction in the North Sea will continue to be a vital part of the country’s energy sector, helping the shift to cleaner energy and protecting jobs for years.
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By GlobalDataNevertheless, this ruling raises doubts about the future of the Rosebank project, one of the largest in the North Sea. According to recent UK media reports, Equinor, backed by the Norwegian Government, and its partner Ithaca have committed to investing $3.8bn (Nkr39.85bn) in its initial phase.
In December 2023, Uplift and Greenpeace UK initiated separate legal actions challenging the UK’s approval to develop Rosebank’s largest untapped North Sea oilfield.
Both groups requested a judicial review from the Court of Session in Edinburgh regarding the decision by then Energy Secretary Claire Coutinho and the North Sea Transition Authority – also legally known as the Oil and Gas Authority – to authorise the project.
Reports indicated that the case had been put on hold pending the outcome of a legal challenge in England. Activists also contested Surrey County Council’s decision to authorise drilling near Horley in 2019.
Eventually, the Supreme Court sided with the activists’ argument that the council acted unlawfully by approving the project without assessing downstream emissions.
The government said that consultations on new guidance in response to the Supreme Court ruling will provide clarity and certainty for the industry, ensuring a fair and prosperous transition that aligns with climate and legal obligations.
On 29 August, the Labour Government announced plans for new environmental guidance for oil and gas companies, which aim to stabilise the industry, support investment, protect jobs, deliver economic growth and help the North Sea transition to a clean energy future to meet climate obligations.
