You can now get up to 20 free RNS alerts every day as a registered member. Clickhere to set-up your alerts.

Less Ads, More Data, More Tools Register for FREE
Sponsored Content
Don't want ads? Click here
Sponsored Content
Don't want ads? Click here

Judge upholds legal challenge against new North Sea oil and gas fields

Thu, 30th Jan 2025 10:38

(Alliance News) - A judge has upheld a legal challenge by environmental campaigners against the decision to grant consent to two new oil and gas fields in the North Sea.

Greenpeace and Uplift brought the challenge at the Court of Session in Edinburgh over decisions to give approval to the Rosebank oil field north west of Shetland and the Jackdaw gas field off Aberdeen.

They argued the UK government and North Sea Transition Authority, NSTA, had acted unlawfully when granting consent to the projects, as environmental impact assessments did not take into account downstream emissions resulting from the burning of the extracted fuels.

The former Conservative-led UK government approved Shell PLC's proposals to develop the Jackdaw field in 2022, and cleared Equinor and Ithaca Energy PLC's plans to drill in the Rosebank field in September 2023.

In a judgement published on Thursday, Andrew Ericht said the decision to grant consent was unlawful, and ruled the consent should be "reduced" [quashed] and reconsidered.

In his published opinion, he said: "Having considered all the circumstances of the case and the various public and private interests, I have reached the conclusion that the balance lies in favour of granting reduction.

"The public interest in authorities acting lawfully and the private interest of members of the public in climate change outweigh the private interest of the developers.

"The factors advanced by Shell, Equinor and Ithaca in respect of their private interest do not justify the departure on equitable grounds from the normal remedy of reduction of an unlawful decision.

"The decisions will be reduced, and can be taken again, this time taking into account downstream emissions."

He said there was a public interest in having the decision "remade on a lawful basis" because of the effects of climate change.

"The effect of the burning of fossil fuels on climate change and the lives of individual persons is now well recognised in law," he explained.

He ordered that the reduction be suspended pending the secretary of state's re-consideration of the matter, which he said would give the companies "options" on how to proceed in the interim.

However, he said no oil or gas should be extracted before a new decision on consent is made.

Philip Evans, senior campaigner at Greenpeace UK, said: "This is a historic win – the age of governments approving new drilling sites by ignoring their climate impacts is over.

"The courts have agreed with what climate campaigners have said all along: Rosebank and Jackdaw are unlawful, and their full climate impacts must now be properly considered.

"Fossil fuels are an economic dead end. Now that the ball is back in the government's court, ministers have the opportunity to sort out the legal mess left by their predecessors.

Tessa Khan, executive director of Uplift, said: "This is a significant win which means that Rosebank cannot go ahead without accounting for its enormous climate harm.

"The continued burning of oil and gas is why we are seeing more extreme weather like Storm Eowyn and flooding that have claimed lives and caused hundreds of millions of pounds in damage and clean-up costs, not to mention the devastation it's causing in other countries.

"Most people are now joining the dots with endless oil and gas drilling and are worried about the future."

A Shell spokesperson called for swift action from the government in response to the ruling.

The spokesperson said: "Today's ruling rightly allows work to progress on this nationally important energy project while new consents are sought.

"We have spent more than GBP800 million 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."

An Equinor spokesperson said: "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%, GBP6.6 billion, of total direct investment benefiting UK businesses.

"Equinor and its Rosebank JV partner, Ithaca, have already committed over GBP2.2 billion on developing Rosebank – awarding vital contracts across the supply chain and employing personnel to deliver the work."

Ithaca has been approached for comment.

A Department for Energy Security & Net Zero spokesperson said: "The government has already consulted on revised environmental guidance to take into account emissions from burning extracted oil and gas to provide stability for industry, support investment, protect jobs and deliver economic growth.

"We will respond to this consultation as soon as possible and developers will be able to apply for consents under this revised regime.

"Our priority is to deliver a fair, orderly and prosperous transition in the North Sea in line with our climate and legal obligations, which drives towards our clean energy future of energy security, lower bills, and good, long-term jobs."

Shell shares rose 1.0% to 2,622.10 pence each on Thursday morning in London, while Ithaca Energy shares were up 1.1% at 128.17p each.

By Nick Forbes, PA Scotland

Press Association: News

source: PA

Copyright 2025 Alliance News Ltd. All Rights Reserved.

Related Shares

More News
26 Mar 2025 16:50

LONDON MARKET CLOSE: Stocks up as Chancellor acts to calm fiscal worry

(Alliance News) - Stocks closed higher on Wednesday and the bond market remained calm as Rachel Reeves pledged to stick to her fiscal rules amid slowi...

26 Mar 2025 15:01

London close: Stocks higher as Reeves delivers Spring Statement

(Sharecast News) - London stocks closed modestly higher on Wednesday, supported by investor reaction to the chancellor's Spring Statement and a larger...

26 Mar 2025 11:50

LONDON MARKET MIDDAY: Pound weak as investors await spring budget cuts

(Alliance News) - London stocks remained higher at midday on Wednesday, spurred on by the pound continuing to soften against the US dollar and ahead o...

26 Mar 2025 09:54

LONDON BROKER RATINGS: Goldman reinitiates WPP; DZ raises Rio Tinto

(Alliance News) - The following London-listed shares received analyst recommendations Wednesday morning and on Tuesday:

26 Mar 2025 07:54

LONDON BRIEFING: Vistry profit tumbles; Virgin Wines UK plans buyback

(Alliance News) - London is called to open lower on Wednesday, following soft UK inflation data and ahead of expected spending cuts in Chancellor Rach...

Free Investment Tools

Register for FREE

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.