Released February 17, 2025 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Consent granted for two of the U.K.'s largest proposed oil and gas projects--Rosebank and Jackdaw--was granted unlawfully and the developers, Shell plc (NYSE:SHEL) (London, England) and Equinor (NYSE:EQNR) (Stavanger, Norway), will have to seek fresh approvals.
The decision in a Scottish court by the judge, Lord Ericht, found that a more detailed assessment of the fields' environmental impact was required, taking into account the effect on the climate of burning any fossil fuels extracted. Although the projects submitted environmental impact assessments (EIAs) to outline the "direct and indirect effects" of the projects and the emissions generated while extracting oil and gas, they failed to account for the emissions of the fossil fuels when burned, referred to as "downstream" or "Scope 3" emissions. In a concession to the developers, the Judge said that preparatory work could continue while the new assessments are carried out but extraction of oil and gas will not be permitted without new approvals.
Rosebank and Jackdaw were granted permission by the previous Conservative Party-led government in 2023 and 2022, respectively. Located around 129-kilometers (km) from the Shetland Islands, the Rosebank field is the country's largest untapped oil field and is estimated to contain up to 300 million barrels. Developing the field has a total investment value in excess of £8 billion (US$9.8 billion). Equinor and partners plan to invest US$3.8 billion in the first phase. Industrial Info is tracking four projects associated with Rosebank. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
In 2022, Shell made a final investment decision for the Jackdaw field development, located approximately 275 km east of Aberdeen in the central North Sea. Shell estimates that the field has reserves of between 120 million and 250 million barrels of oil equivalent. At its peak, Jackdaw is expected to produce 6.5% of the U.K's total gas needs, enough to heat 1.4 million homes. Industrial Info is tracking seven related projects amounting to almost US$900 million in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports. For additional information, see June 14, 2022, article - U.K. Greenlights Jackdaw Oil and Gas Project.
Responding to the ruling, a spokesperson for Equinor told media: "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 U.K.'s economic growth, with an estimated 77%--£6.6 billion (US$8.2 billion)--of total direct investment benefiting U.K. businesses. We welcome the court's judgment which enables Equinor to continue developing a project expected to create up to 2,000 U.K. jobs during its development phase." Equinor and partners have already committed over £2.2 billion (US$2.7 billion) on developing Rosebank.
Last December, Shell and Equinor agreed to merge their U.K. offshore oil and gas assets into a 50-50 owned joint venture. Based in Aberdeen, Scotland, the venture will include Equinor's equity interests in Mariner, Rosebank and Buzzard, and Shell's equity interests in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion. A range of exploration licenses will also be part of the transaction. In the short term, Equinor's modest production of 38,000 barrels of oil equivalent per day (boe/d) will be bolstered by Shell U.K.'s 100,000 boe/d, giving the venture the ability to produce 140,000 boe/d in 2025. In the longer term, Shell will get shared ownership in the major Rosebank field, which has the potential to produce 70,000 boe/d from 2027 and continue producing out to 2050. For additional information, see December 16, 2024, article--Shell, Equinor Merge North Sea Operations.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The decision in a Scottish court by the judge, Lord Ericht, found that a more detailed assessment of the fields' environmental impact was required, taking into account the effect on the climate of burning any fossil fuels extracted. Although the projects submitted environmental impact assessments (EIAs) to outline the "direct and indirect effects" of the projects and the emissions generated while extracting oil and gas, they failed to account for the emissions of the fossil fuels when burned, referred to as "downstream" or "Scope 3" emissions. In a concession to the developers, the Judge said that preparatory work could continue while the new assessments are carried out but extraction of oil and gas will not be permitted without new approvals.
Rosebank and Jackdaw were granted permission by the previous Conservative Party-led government in 2023 and 2022, respectively. Located around 129-kilometers (km) from the Shetland Islands, the Rosebank field is the country's largest untapped oil field and is estimated to contain up to 300 million barrels. Developing the field has a total investment value in excess of £8 billion (US$9.8 billion). Equinor and partners plan to invest US$3.8 billion in the first phase. Industrial Info is tracking four projects associated with Rosebank. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
In 2022, Shell made a final investment decision for the Jackdaw field development, located approximately 275 km east of Aberdeen in the central North Sea. Shell estimates that the field has reserves of between 120 million and 250 million barrels of oil equivalent. At its peak, Jackdaw is expected to produce 6.5% of the U.K's total gas needs, enough to heat 1.4 million homes. Industrial Info is tracking seven related projects amounting to almost US$900 million in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports. For additional information, see June 14, 2022, article - U.K. Greenlights Jackdaw Oil and Gas Project.
Responding to the ruling, a spokesperson for Equinor told media: "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 U.K.'s economic growth, with an estimated 77%--£6.6 billion (US$8.2 billion)--of total direct investment benefiting U.K. businesses. We welcome the court's judgment which enables Equinor to continue developing a project expected to create up to 2,000 U.K. jobs during its development phase." Equinor and partners have already committed over £2.2 billion (US$2.7 billion) on developing Rosebank.
Last December, Shell and Equinor agreed to merge their U.K. offshore oil and gas assets into a 50-50 owned joint venture. Based in Aberdeen, Scotland, the venture will include Equinor's equity interests in Mariner, Rosebank and Buzzard, and Shell's equity interests in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion. A range of exploration licenses will also be part of the transaction. In the short term, Equinor's modest production of 38,000 barrels of oil equivalent per day (boe/d) will be bolstered by Shell U.K.'s 100,000 boe/d, giving the venture the ability to produce 140,000 boe/d in 2025. In the longer term, Shell will get shared ownership in the major Rosebank field, which has the potential to produce 70,000 boe/d from 2027 and continue producing out to 2050. For additional information, see December 16, 2024, article--Shell, Equinor Merge North Sea Operations.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
