UK Risks Becoming 'Uninvestable' on Oil, Gas Field Rejections, Warns Equinor
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UK risks being 'uninvestable' if new oil and gas fields not approved, warns Equinor
Image caption: Anders Opedal said Equinor would have to take "a hard view" about future investments in the UK if it were to reject new drilling.
By Simon Jack
Business editor
Published 52 minutes ago
Oil giant Equinor has warned it may shun further investments in the UK if new oil and gas fields at Rosebank and Jackdaw are not approved.
"The question will be: is the UK investable in the future? I hope it will not come to that," said Anders Opedal, boss of the Norwegian state oil company which is part owner of the sites.
He told the BBC the company would "have to take a hard view about it" if a decision was made to reject new drilling.
Warning Comes Amid Energy Security Debate
The warning comes as the UK government is set to decide whether or not to grant final approval to extract oil and gas at Rosebank and Jackdaw, despite a ban pledged in Labour's election manifesto.
The government said any decision would take into account all relevant evidence.
Rising Energy Prices Fuel Debate
Rising energy prices have prompted renewed debate over the UK's energy security, with UK production forecast to halve by 2035. The UK already relies on Norway for half of its gas needs.
Opedal said he remained confident both projects would get approved but he acknowledged the current limbo was "an uncomfortable position to be in."
He noted that the UK could produce more of its own oil and gas, saying, "It's a political choice. The North Sea oil and gas industry started on the UK side. We learned from the UK and it's actually the same geology on both sides of the border – several fields actually cross it."
Rosebank and Jackdaw Projects
Rosebank is the United Kingdom's largest undeveloped oil and gas field, located in the North Atlantic about 80 miles north-west of the Shetland Islands, thought to hold up to 500 million barrels of oil and gas.
Opedal noted the exploration licence for the site was originally granted 25 years ago, with the discovery made in 2004 and the final investment decision in 2023.
Both projects were initially given the go-ahead by the former Conservative government but were delayed by a legal ruling from a Scottish court, after environmental groups argued consent was given without fully considering the climate impact.
Following a public consultation, the final decision now rests with Energy Secretary Miatta Fahnbulleh.
Both Jackdaw and Rosebank are operated by Adura, a joint venture between Equinor and Shell. Aberdeen-based firm Ithaca also owns 20% of Rosebank.
Adura has previously said that if approval comes soon, Jackdaw could start delivering gas to UK homes by this winter as the construction is "99% complete."
Environmental Group's Opposition
Tessa Khan, executive director of Uplift, an organization that wants the UK to move away from fossil fuel production, said new drilling at Rosebank "won't cut our bills" and was a "bad deal for Britain."