The developer behind the UK’s largest untapped oil field, Rosebank, has warned that revoking its licence could result in the loss of thousands of jobs and hundreds of millions of pounds. Equinor, which owns the Rosebank field alongside Ithaca Energy, made the statement during a court hearing as environmental campaigners challenge the UK government’s approval of the project.
Equinor has committed £2.2 billion to the Rosebank development, which is expected to provide employment for around 4,000 people. Similarly, Shell, which owns the Jackdaw gas field in the North Sea—also under scrutiny—stated that revoking its licence would waste significant financial resources and negatively impact jobs.
John MacGregor KC, representing Equinor at the Court of Session in Edinburgh, emphasised the importance of stability in regulated industries: “Certainty and predictability is critical in highly-regulated industries. Those making major investment decisions need to be able to ascertain the risk of proceeding.”
The judicial review follows a UK Supreme Court ruling that environmental impact assessments must include downstream emissions—the greenhouse gases released when fossil fuels are burned. This ruling has cast doubt on the legality of licences granted for Rosebank and Jackdaw, as these assessments did not initially account for downstream emissions.
Despite this, Equinor and Shell argue that they complied with the law as it was understood at the time and provided full environmental assessments in good faith. They contend that they should not be penalised for a legal ruling that could not have been anticipated.
Shell’s advocate, Christine O’Neill KC, told the court that halting production at Jackdaw would waste more than £750 million already invested in the project and could cost Shell an additional £200 million if delayed by just 12 months. The Jackdaw field is expected to provide jobs for at least 1,000 people between 2023 and 2025.
Environmental groups Greenpeace and Uplift are leading the legal challenge and have called for an immediate halt to both developments while further environmental assessments are conducted. If successful, the final decision on whether oil and gas extraction proceeds could fall to Energy Secretary Ed Miliband.
The hearing continues at the Court of Session in Edinburgh, but a decision is not expected for several weeks or months.
