Norwegian state energy firm Equinor could withhold future UK funding if the government fails to sanction new oil and gas extraction in the North Sea, reports BritPanorama.
Anders Opedal, chief executive of Equinor, indicated that alternative markets would be considered if green lights are denied for the Jackdaw and Rosebank projects.
This stance comes despite Labour promising a complete ban on new North Sea drilling within its election manifesto.
Last month, Prime Minister Andy Burnham noted he would adopt a “pragmatic” approach toward North Sea oil and gas ahead of pending rulings on Jackdaw and Rosebank “as we build a bridge to a clean energy future as we confront the climate crisis.”
In an interview with the BBC, Mr. Opedal stated that the decision on whether to greenlight the two sites was “a political choice.”
He conveyed, “The question will be: is the UK investable in the future? I hope it will not come to that. It’s a political choice. The North Sea oil and gas industry started on the UK side.”
Mr. Opedal added, “We learned from the UK and it’s actually the same geology on both sides of the border – several fields actually cross it. The licence was awarded in 2001, the discovery was made in 2004 and the final investment decision in 2023.”
Last month, nearly 600 climate scientists, health professionals, and conservationists urged Mr. Burnham to reject applications for new drilling licences. In a letter to him and Energy Secretary Miatta Fahnbulleh, the group of 575 experts warned that approving the oil field would contradict climate science and lead the UK to breach its national and international climate commitments.
Recent reports indicate that the UK government may approve new North Sea drilling, starting with the Jackdaw gas field, located 150 miles east of Aberdeen. Ms Fahnbulleh is also expected to decide on Rosebank – the largest untapped oil field in the North Sea, which lies approximately 80 miles north-west of Shetland – in the coming months.
The final verdict on these projects will serve as a significant environmental test for Mr. Burnham, who faces increasing pressure from climate activists to adhere to Labour’s manifesto commitment and refuse consent.
