Labour has been plunged into fresh turmoil after a Cabinet civil war erupted over plans to green-light a massive North Sea oil project ahead of the Budget. Chancellor John Healey and Energy Secretary Miatta Fahnbulleh are locked in a bitter row over whether to approve drilling at the controversial Rosebank oilfield, which could generate billions in vital revenue.
Power struggle over Rosebank approval
Andy Burnham and Chancellor John Healey are engaged in a high-stakes power struggle with Net Zero-focused ministers and backbenchers, demanding approval for drilling at Rosebank. Energy Secretary Miatta Fahnbulleh is resisting the scheme, leaning towards rejecting it on environmental grounds, despite having granted permission for the smaller Jackdaw gas project.
The disagreement risks triggering internal pushback, with Labour MPs discussing ways to force a Commons vote on Rosebank should it be approved to register their dissent.
Downing Street stays silent
Downing Street declined to comment on Sunday (October 25) following reports that Mr Burnham and Mr Healey had agreed to try to push the project through, maintaining that the decision is a matter for the Energy Secretary. The Chancellor indicated his support last week, telling ITV that he expects oil and gas revenues to contribute to a new energy wealth fund and suggesting that Treasury projections account for Rosebank receipts.
Industry figures warn that rejecting the field would deal a major blow to the North Sea energy sector, while environmental groups would view the refusal as a significant victory.
Fahnbulleh defends her position
Explaining her position, Ms Fahnbulleh argued the case for Jackdaw does not apply to Rosebank because most of its output would not remain in the UK. She said: "One is a gasfield that caters for the domestic market, while the other is an oilfield that is mainly for export.
"It is right that we judge each application in its own right, and it is absolutely critical that the decision is consistent with our climate obligations, our carbon budgets and the end destination we need to get to with the energy transition."
Emissions and energy security concerns
Rosebank is estimated to produce roughly seven times the emissions of the Jackdaw development, with officials noting it would offer limited support for UK energy security because the majority of the oil would be exported. Backbenchers are now warning of significant party pushback if the Treasury presses ahead with the approval.
A spokesperson for the Department for Energy Security and Net Zero said: "We do not comment on speculation. The North Sea remains a vital national asset, and oil and gas will continue to play an important role in our energy system for decades to come – alongside transitioning to clean power to protect jobs and tackle the climate crisis.
"Any decision will take into account all relevant evidence, including environmental assessments and public representations received during the consultation process."
The standoff follows the recent approval of Jackdaw, located roughly 150 miles east of Aberdeen. Operated by Shell, the field is expected to supply around 6% of the UK's domestic gas - enough to heat 1.4 million homes - which ministers defended as a cleaner alternative to importing foreign fuel. A final decision on the project is expected before the end of the year.
