Prime Minister Andy Burnham has stated that approval for further oil and gas drilling at the North Sea sites Jackdaw and Rosebank has been delayed by "government process" and extensive bureaucratic issues. Burnham informed MPs that he would adopt a "pragmatic approach" to oil and gas drilling, following calls from energy executives to proceed with the projects.
The Jackdaw and Rosebank sites were previously blocked by Scottish courts on environmental grounds in 2024. The former Conservative government had approved both the Rosebank oil field and Jackdaw gas field, located near Aberdeen. Labour's 2024 manifesto included a commitment not to issue new oil and gas drilling licences.
Energy Secretary Miatta Fahnbulleh is anticipated to make a decision on whether to greenlight drilling at Jackdaw and Rosebank, which would primarily be operated by Shell and Equinor, within weeks. Consultations on drilling at both sites concluded in August. Fahnbulleh's decision will involve balancing potential growth effects against environmental commitments.
During Prime Minister's Questions, Tory leader Kemi Badenoch urged Burnham to allow energy companies to proceed. Burnham responded that he had to wait for the government process, which he stated was "struck down by the courts under the Conservative government," to be rectified. He added, "I will take a pragmatic approach on oil and gas. We will set out our decisions shortly."
Industry figures have indicated that Jackdaw could commence production this winter if approved, as much of its infrastructure is already in place. A report by Public First, commissioned by Adura, a joint venture between Shell and Equinor, suggests that the two projects could generate an additional £35 billion in value for the UK economy between 2026 and 2035. The report also estimates that extra tax revenues could amount to £12.1 billion over the next decade.