Prime Minister Andy Burnham has backed a “pragmatic approach” to North Sea oil and gas after the UK Government approved the Jackdaw gas field, paving the way for production to begin within weeks.
Energy Secretary Miatta Fahnbulleh has agreed that the North Sea Transition Authority can grant consent for the development, which is expected to increase UK domestic gas production by around 6% at its peak.
Alongside the approval, the government announced a £2billion Energy Wealth Fund to reinvest North Sea revenues in renewable and low-carbon energy projects.
Jackdaw, operated by Adura, could supply gas for up to 11 years, contribute an estimated £2.9billion to the UK economy and protect hundreds of jobs.
Mr Burnham said: “I welcome the Energy Secretary’s decision, which will protect hundreds of jobs and help keep millions of homes warm this winter. At a time when people are really struggling, it's right that we look in a responsible way at maximising the existing energy reserves we have in Britain that could help.
“We’re committed to moving towards renewable energy and reaching net zero by 2050. But even on our ambitious climate path, we’ll still require oil and gas as part of our energy needs for decades to come. That’s why we’re taking a pragmatic approach to the North Sea. We’re also establishing a new Energy Wealth Fund to invest in renewable energy, support the green transition and help reduce energy bills over the long-term.”
'Important step'
Neil McCulloch, CEO of Adura, said: “This decision is an important and positive step forward for Adura and for the future of UK energy. It provides certainty to the businesses and skilled workers already delivering the project and demonstrates the value of pragmatic, evidence-led decision-making.
“We would like to thank OPRED for conducting a rigorous and thorough process, and the UK Government for reaching its decision on the evidence before it.
“Jackdaw represents a significant prize in its own right: £2.1 billion of investment and enough gas to heat the equivalent of around 1.4 million UK homes at peak production.
“Our attention now turns to Rosebank. It follows Jackdaw in the regulatory process, but the case for approval is equally strong. We believe that applying the same rigorous, evidence-based approach can lead to a similarly positive decision.
“Taken together, Jackdaw and Rosebank offer significant benefits for the UK: strengthening energy security, supporting thousands of skilled jobs and apprenticeships, sustaining supply chain businesses across the country and unlocking billions of pounds of investment, economic activity and revenues to support government spending priorities.”
Reduced reliance on imports
The decision follows the Supreme Court's 2024 ruling requiring developers to assess emissions from burning the oil and gas they produce, which prompted a revised environmental assessment of Jackdaw.
Ms Fahnbulleh said the project was compatible with the UK's legally binding climate commitments and would reduce reliance on imported fuels.
She said: “Following careful consideration of all relevant factors I have agreed that the regulator can grant consent for gas to be produced at Jackdaw, which will begin to supply the UK with gas from this winter thanks to the highly skilled and vital North Sea workers.
“This decision will support the country’s energy security with homegrown gas this winter and help minimise the UK’s use of imported higher emission fuels as we continue our transition to renewables and nuclear.”
Rosebank must now follow
Russell Borthwick, Chief Executive of Aberdeen & Grampian Chamber of Commerce, welcomed the decision and said Rosebank must follow.
He said: "This is a hugely welcome decision, and exactly the sort of pragmatic call the North Sea has been crying out for.
"Jackdaw is 99.9% complete and, with approval now secured, gas from this field will be flowing into homes up and down the country within weeks. This is a direct, tangible boost to the UK's energy security at a time when it matters most.
"Every molecule of gas we produce in the North Sea, under some of the world's highest environmental standards, is a molecule we don't have to import on a tanker from overseas. That's good for jobs, good for the supply chain, and good for the climate.
"But Jackdaw cannot be the end of the story. Rosebank is every bit as vital to our energy security and every bit as ready to deliver for the UK supply chain anchored here in the North East of Scotland. Government must now move with the same urgency and pragmatism and get Rosebank over the line without further delay.”
Ministers also confirmed they have asked the regulator to consider urgent cases involving production in already-explored areas near existing fields, ahead of legislation introducing new Transitional Energy Certificates.
Discussions are also beginning with industry leaders on a refresh of the North Sea Transition Deal, aimed at protecting jobs, supporting domestic production and developing future energy industries.