The Equinor-operated Rosebank oil and gas field will provide significant investment into the UK.
According to a socioeconomic study by Wood Mackenzie and Voar Energy, Rosebank is estimated to create £8.1bn of direct investment, of which £6.3bn is likely to be invested in UK-based businesses.
The report also estimates that a further £16bn could be generated through indirect and induced economic impacts over the field life resulting in a total gross value add (GVA) of £24.1billion.
Rosebank, which is factored into the UK Government’s carbon budget, will have a significant impact on the UK production outlook. In 2021, the UK only produced 57% of the volumes required to meet oil demand and 41% of national gas demand.
From first production in 2026 through to 2030 Rosebank could account for 8% of the UK’s oil production. Rosebank, which will be tied to the UK gas infrastructure, is projected to produce an average of 21 MMSCF of natural gas every day, equivalent to the daily average use of Aberdeen city.
Arne Gürtner, SVP Upstream in the UK and Ireland said, “Equinor is committed to Net Zero by 2050 and is ready to invest to bring energy security while also transitioning to lower-carbon energy sources over the coming years.
"Here in the UK we are building the world’s largest wind farm, Dogger Bank, and are planning some of the largest hydrogen and CCS projects in the world.
"That said, for the next few decades oil and gas will continue to play a vital role alongside these low carbon systems. Therefore, while we still need oil and gas, we aim to develop and operate projects such as Rosebank with the lowest possible carbon footprint while bringing the maximum value to society in the shape of UK investment, local jobs and energy security.”
Equinor acquired operatorship of Rosebank in 2019 and has since then been working to optimise and mature a development solution for the field, originally discovered in 2004, together with partners Suncor and Ithaca Energy.
The selected development concept for the Rosebank field includes redeployment and reuse of an existing FPSO, which will avoid 250 thousand tonnes of CO2 emissions.
Equinor and project partners will invest around £80 million up front to ensure it will be possible to power operations with electricity.
As a result, Rosebank could become one of the first oil and gas developments on the UK continental shelf to be powered by electricity, reducing the emissions and contributing to the UK government’s decarbonisation target of achieving a net-zero basin in the UK by 2050.
Rosebank will also have a major impact on local supply chains, industry and jobs according to the report. At its peak and during the development phase, Rosebank is expected to create 1600 jobs, of which 1200 are expected to be UK-based. Across the lifetime of the field, Rosebank will continue to support significant employment with an average of 450 full time employees.
Russell Borthwick, Chief Executive of Aberdeen & Grampian Chamber of Commerce, welcomed the proposed investment by Equinor as "a vote of confidence in the UKCS".
"New developments such as Rosebank are vital to energy security in the here and now and will sustain jobs as we move towards the renewable and low carbon technologies needed to meet the energy needs of the future," he said.
“Simply shutting down North Sea operations is not an option. It would drive increasing reliance upon imported oil and gas, at a higher financial and environmental cost, and put tens of thousands of jobs at risk.
“We have a once in a lifetime opportunity to secure our nation’s future energy security, prosperity and our climate with a fair and just transition. This will require huge investment, much of it from oil and gas operators. Equinor is already demonstrating this by developing the world’s first floating offshore windfarm in this region."