The UK Government has approved plans to begin drilling in the Jackdaw gas field in the North Sea, ending months of speculation about the project's future.
Owner Adura said the field could deliver around 6% of UK North Sea gas production. The approval was granted on Wednesday morning, following fresh public consultations that closed in August.
Background of the Project
Jackdaw is one of two projects, alongside the Rosebank oil field off Shetland, that were approved by the previous Conservative government. Both received drilling licences in June 2022, but the Scottish courts overturned these approvals after a challenge from environmental campaigners.
The overturn followed a UK Supreme Court ruling that developers had to account for the climate impact of burning fossil fuels in their planning applications.
Separate Decision for Rosebank
A decision on Rosebank, the largest untapped oil field in the North Sea, is being made separately. Energy Secretary Miatta Fahnbulleh said it will take "a bit longer".
The decisions are seen as a key test for Prime Minister Andy Burnham, who has said he would "take a pragmatic approach when it comes to the North Sea" since coming to power in the summer.
Political Pressures and Commitments
Mr Burnham has faced pressure from environmental groups to "stick to the spirit of Labour's manifesto commitment" and refuse consent for either scheme. The 2024 manifesto committed to issuing no new oil and gas licences for the North Sea.
However, proponents of Jackdaw and Rosebank within the party have argued that neither are new fossil fuel fields, given the wheels were in motion to tap them ahead of Labour coming to power.