Burnham to approve North Sea oil and gas drilling in policy blitz
Incoming prime minister Andy Burnham is set to announce new drilling for oil and gas in the North Sea within days of taking office as part of a policy blitz, according to reports.
Burnham’s team has asked the civil service to draw up plans to approve drilling projects at the Jackdaw gas field and Rosebank oil field off the coast of Scotland, alongside an expansion of ‘tie-backs’ which allow further drilling near existing fields, Bloomberg reported.
The fields are owned and operated by Adura, a joint venture launched by energy giants Shell and Equinor to combine their North Sea operations.
While no final decision has been made on the North Sea announcement, Burnham is expected to indicate he is in favour of more drilling, according to the reports. He has reportedly been receptive to colleagues’ request for a change of policy over the North Sea, particularly from Scottish Labour MPs.
The future of the the sites has become a political flashpoint over the course of the conflict in the Middle East, as calls to boost domestic energy production were resisted by current energy secretary Ed Miliband on the grounds they undermine the net-zero agenda.
Project approval
Both Jackdaw and Rosebank projects remain in limbo in the legal system after previous approvals were overturned by the court, who ruled the consents were illegal.
But public consultations were launched on both Jackdaw and Rosebank on Thursday, meaning Burnham’s government may not be able to formally approve the projects before they have run their course.
Speaking on the launch of the consultation, Neil McCulloch, chief executive of Adura, said approving both sites would “unlock significant benefits” for the UK including boosting energy security for the winter months.
The firm said that Rosebank alone can also contribute approximately 10 per cent of UK continental shelf oil output “helping to slow the decline in domestic production while improving the availability of refined products such as jet fuel”.
New drilling would likely lead to criticism from environmentalists and some on the left of the Labour party, who have opposed them on environmental grounds. However, any movement forward on the plans is set to be welcomed by trade unions and those on the right.
Sharon Graham, general secretary of Unite the Union, previously called the banning of new licences an “act of monumental political self-harm”, while chancellor Rachel Reeves said she would be “very happy” to back exploration at both sites in April.
One official said approving both fields wouldn’t breach Labour’s pledge to ban fresh licences to explore new fields, as they were grants under the previous Conservative government.
But the ultimate decision on the fields will rest on the person Burnham places into Miliband’s post. The former mayor of Greater Manchester has said he won’t name new ministers until he takes office next Monday.
Adura said: “Rosebank and Jackdaw represent a major economic opportunity for the UK. They will provide critical work for the energy supply, and businesses across the UK are already contributing their expertise to both developments.
“Together, Rosebank and Jackdaw can sustain thousands of jobs and apprenticeships, generate substantial revenue for public services, and provide around 10 per cent of the UK’s domestic gas production.
“Timely approval of Rosebank and Jackdaw would deliver the greatest benefit for the UK… and we will continue to work with the government to ensure both projects can progress.”