Offshore Energies UK (OEUK) is urging the UK Government to approve the controversial Jackdaw and Rosebank oil and gas projects in the North Sea, describing this as a potential "powerful reset for the sector" under Andy Burnham's new government.
OEUK chief executive makes case for projects
David Whitehouse, chief executive of OEUK, said the case for both projects is "overwhelming" from environmental and social perspectives, including job support and economic value. He spoke as reports suggested the UK Government could approve them as early as August.
Whitehouse told the Press Association: "What would be really significant, and what we look for now, is for this UK Government to say while we use oil and gas we back our own production, that is what we want to hear."
Consultations and timelines
Consultations on Jackdaw and Rosebank run until August 10 and August 17 respectively, after which the Offshore Petroleum Regulator for Environment and Decommissioning (Opred) will make a recommendation. Whitehouse said work could commence "very quickly" if approved, noting that "the Jackdaw platform itself is installed, the wells are drilled."
He added that a decision on Jackdaw could come towards the end of August or September, and that the project "will produce a significant amount of the gas the UK will need over the winter period."
Government stance and meetings
New Energy Secretary Miatta Fahnbulleh met Whitehouse in Aberdeen on Thursday, her first visit since taking over from Ed Miliband. Whitehouse said she indicated she would take a "pragmatic approach," despite the UK Labour Government's 2024 manifesto opposition to new oil and gas developments.
Whitehouse noted that Burnham "speaks a lot about the importance of place, and the importance of industry, reindustrialisation," adding that "that narrative lends itself, I think, that the UK should be supporting its own industries."
Warnings if projects rejected
Whitehouse warned that refusing consent for both projects would have "truly significant" consequences, sending a signal that the UK is choosing not to support its own industries and jobs, and that the taxes those projects would pay are not important. He said it would impact a £50 billion pipeline of projects that would follow.
A Department for Energy Security and Net Zero spokesman said: "The North Sea remains a vital national asset, supporting jobs, growth and the UK's energy security."
