What is the Future of Shell and Equinor's UK Oil Fields?

Share
Rosebank oil and gas field. Credit: Equinor
Scottish Court strikes down Shell's Jackdaw and Equinor's Rosebank field approvals, meaning new consent is needed before drilling can begin

In a significant legal ruling on 30 January, the Court of Session in Edinburgh declared that the authorisation of two new oil and gas fields in the North Sea, Jackdaw and Rosebank, was done unlawfully.

This decision affects major industry players like Shell, Equinor and Ithaca, stipulating that they cannot start drilling until the UK government provides new consents.

The seeds of this legal confrontation were planted by environmental groups challenging the legitimacy of these oil fields via the court system.

The key reasons for the challenges are:

  • Insufficient environmental impact assessment: The UK government failed to properly consider the full impact of emissions, particularly Scope 3 emissions, from burning the extracted oil and gas and not just the impact of extracting the oil
  • Unlawful approval process: The UK government admitted that the previous Secretary of State’s decisions to agree to the grant of consent for Jackdaw and Rosebank projects were unlawful
  • Potential environmental damage: Campaigners, including Greenpeace and Uplift, argue that the developments could harm marine protected areas in the North Sea
  • Lack of transparency: Environmental groups claim there was a failure by the regulator to be transparent in its reasoning for approving the schemes
  • Climate concerns: Activists say that these projects are incompatible with the UK’s climate obligations and will exacerbate global climate issues.

Greenpeace launched legal challenges against both projects alongside Uplift.

“Jackdaw and Rosebank were both approved under the false claim that they are compatible with the UK’s legally binding climate commitments,” the body says.

Greenpeace campaigns against new oil and gas facilities. Credit: Jiri Rezac/Greenpeace

“This is not true — regulators approved them without taking into account the emissions caused from burning the fossil fuels. Which is where the vast amount of emissions are produced.”

Shell’s Jackdaw project

Shell's Jackdaw gas platform is being constructed to facilitate extraction in the North Sea, eventually transporting gas to Scotland.

Shell's Jackdaw site in the North Sea. Credit: Shell

This field, situated 250km east of Aberdeen, is poised to provide enough gas to heat approximately 1.4 million UK homes. This represents about 6% of the anticipated gas production from the UK North Sea sector.

  • January 2020: Shell submits an Environmental Statement for the Jackdaw Field Development to the UK government’s Department for Business, Energy & Industrial Strategy (BEIS)
  • June 2022: Regulator North Sea Transition Authority (NSTA) gives consent for Shell UK to develop the Jackdaw project. The Offshore Petroleum Regulator for Environment & Decommissioning (OPRED) had previously agreed to the grant of consent for the Jackdaw project following an assessment of the environmental impacts of the project as part of this consent process.
  • Independent campaigning network Greenpeace asked the Scottish Court to review NSTA’s grant of consent and OPRED’s agreement to the grant of consent. Greenpeace says the planning application should consider not only the emissions from the platform’s operations, but also the emissions when the gas is used by customers.
  • January 2025: Today’s decision means work can continue while a fresh consent process is carried out for Jackdaw.

Shell has expressed a commitment to bolster UK energy infrastructure to avoid an increased dependency on gas imports, which could constitute up to 80% by 2030 if domestic projects like Jackdaw are not developed.

The strategic significance of the Rosebank project

Youtube Placeholder

The Rosebank oil field, largely headed by Equinor, is regarded as a vital component for the UK's energy resilience and economic expansion.

Equinor — which owns 80% of the site — believes there are “sound and rational reasons for developing Rosebank”. 

“This project is part of our contribution to energy security and creating jobs for Britain,” the company says. 

“In the longer term, our ambition is to reduce CO₂ emissions from production through electrification measures.”

More than 2,000 job opportunities could stem from this project, which is projected to account for 7% of the UK oil production from its commencement until 2030.

Map of Rosebank field location north of Scotland. Credit: Equinor

Rosebank, the UK’s largest undeveloped oil and gas field, holds an estimated 300 million barrels of recoverable oil. Most of this oil is expected to be exported overseas.

Equinor views oil and gas as key to the UK’s energy transition.

“Oil and gas will be needed to power the global economy for many years to come, including in independent scenarios of what would be needed in a Paris-aligned trajectory,” it says.

“As well as being primary sources of energy, oil and gas will be needed as input to low carbon fuels such as blue hydrogen for hard-to-abate sectors and as feedstocks for non-energy applications such as chemicals.

“To meet the needs of society, Equinor will continue to produce oil and gas for the foreseeable future.”

The field will be developed in two phases, with Phase 1 targeting 245 million barrels of oil. Production is expected to begin between 2026 and 2027.

Impact of the Court Ruling

The court decision allows ongoing work on Jackdaw and Rosebank to continue while new consent is sought.

Judge Lord Ericht specified that a more comprehensive environmental impact assessment must be conducted.

However, oil and gas extraction is prohibited until fresh approval is granted.

This means both projects could still proceed, but face delays pending new environmental reviews and regulatory approvals.

The floating production storage and offloading (FPSO) unit for Rosebank, Petrojarl Knarr. Credit: Altera/Norske Shell

Greenpeace UK’s Philip Evans says: “This is a historic win — the age of governments approving new drilling sites by ignoring their climate impacts is over.”

A spokesperson for Shell, which owns Jackdaw, says: “Today’s ruling rightly allows work to progress on this nationally important energy project while new consents are sought.

“We have spent more than £800m (US$994.9m) since the regulator approved Jackdaw in 2022. 

“Swift action is needed from the government so that we and other North Sea operators can make decisions about vital UK energy infrastructure.

“When operational, Jackdaw would provide enough fuel to heat 1.4 million UK homes, at a time when older gas fields are reaching the end of their production and the UK is reliant on imported gas to meet its energy needs.”

A spokesperson for Equinor says: "We welcome today’s ruling and are pleased with the outcome which allows us to continue with progressing the Rosebank project while we await new consents.

“Rosebank is critical for the UK's economic growth, with an estimated 77% (£6.6bn, US$8.2bn) of total direct investment benefiting UK businesses.”


Explore the latest edition of Sustainability Magazine and be part of the conversation at our global conference series, Sustainability LIVE

Discover all our upcoming events and secure your tickets today.


Sustainability Magazine is a BizClik brand

Share

Featured Articles

How Workiva is Transforming ESG Reporting Strategies

Corporate reporting platform Workiva's latest study reveals 97% of executives see sustainability data integration as key to business growth by 2026

This Week's Top Five Stories in Sustainability

This week's top stories include a forecast for DEI across 2025, missed UN NDC deadlines, energy revolution in the Baltics, Starbucks' legal case & AI laws

McKinsey Will ‘Boldy Pursue’ DEI in Face of Storm

Reports say McKinsey has doubled down on DEI initiatives despite other high-profile firms and businesses retreating from pledges after US executive orders

Apple, IBM & GM Amongst Those Set For DEI Showdowns in 2025

Diversity & Inclusion (D&I)

Which 10 Nations Met the UN's Deadline for NDC Targets?

Net Zero

What Next as Baltic States Switch off Russian Energy Supply?

Renewable Energy