Government approves drilling in Jackdaw gas field

The UK Government has approved plans to begin drilling in the Jackdaw gas field in the North Sea.

The decision by the North Sea Transition Authority ends months of speculation about the future of the project, which owner Adura said could deliver around 6% of UK North Sea gas production.

Energy Secretary Miatta Fahnbulleh, who gave approval for the NSTA to grant consent for drilling, said the move will “support the country’s energy security with homegrown gas this winter”.

Prime Minister Andy Burnham added the decision will “protect hundreds of jobs and help keep millions of homes warm”, but stressed it would not hinder the Government’s targets on renewable energy.

He said: “At a time when people are really struggling, it’s right that we look in a responsible way at maximising the existing energy reserves we have in Britain that could help.

“We’re committed to moving towards renewable energy and reaching net zero by 2050.

“But even on our ambitious climate path, we’ll still require oil and gas as part of our energy needs for decades to come.”

The drilling project is one of two – alongside the Rosebank oil field off Shetland – which were approved by the previous Conservative government.

Jackdaw and Rosebank were initially approved in 2022 (PA Graphics)

PA Graphics

Both were approved for drilling licences in June 2022, but this was overturned by the Scottish courts after a challenge from environmental campaigners.

This came after a UK Supreme Court ruling that developers had to account for the climate impact caused by burning fossil fuels in their planning applications.

Fresh public consultations on the proposals took place this year and closed in August, and the Government gave the green light to Jackdaw on Wednesday morning.

Announcing the decision, Ms Fahnbulleh said: “Following careful consideration of all relevant factors, I have agreed that the regulator can grant consent for gas to be produced at Jackdaw, which will begin to supply the UK with gas from this winter thanks to the highly skilled and vital North Sea workers.

“This decision will support the country’s energy security with homegrown gas this winter and help minimise the UK’s use of imported higher emission fuels as we continue our transition to renewables and nuclear.

“The decision is compatible with our legally binding climate commitments, and we remain resolute in ending new licences for oil and gas and achieving net zero by 2050.”

A decision on Rosebank, the largest untapped oil field in the North Sea, is being made separately, with Ms Fahnbulleh saying it will take “a bit longer”.

Adura chief executive Neil McCulloch said approval of Rosebank should now follow.

He said: “Jackdaw represents a significant prize in its own right: £2.1 billion of investment and enough gas to heat the equivalent of around 1.4 million UK homes at peak production.

“Our attention now turns to Rosebank. It follows Jackdaw in the regulatory process, but the case for approval is equally strong. We believe that applying the same rigorous, evidence-based approach can lead to a similarly positive decision.

“Taken together, Jackdaw and Rosebank offer significant benefits for the UK: strengthening energy security, supporting thousands of skilled jobs and apprenticeships, sustaining supply chain businesses across the country and unlocking billions of pounds of investment, economic activity and revenues to support government spending priorities.”

Mr Burnham previously said he would “take a pragmatic approach when it comes to the North Sea” since coming to power in the summer.

He has faced pressure from environmental groups to “stick to the spirit of Labour’s manifesto commitment” and refuse consent for either of the schemes.

The 2024 manifesto committed to issuing no new oil and gas licences for the North Sea.

However, proponents of Jackdaw and Rosebank within the party have argued that neither are new fossil fuel fields, given the wheels were in motion to tap them ahead of Labour coming to power.