Burnham ‘minded’ to approve North Sea gas field

Andy Burnham is minded to approve the substantial Jackdaw gas field in the North Sea after coming under pressure to boost UK energy supplies, sources told The Telegraph.

Figures close to the process have been told by Labour insiders that the Prime Minister is leaning towards approving Jackdaw, although no formal decision has been made.

However, the fate of Rosebank, a similarly substantial field that will produce both gas and oil, is hanging in the balance, with Labour figures warning the sector to brace for a rejection.

Ministers are understood to fear that approving two large fossil fuel projects in the middle of a heatwave – blamed by many on climate change – would be politically disastrous.

An alternative approach would be to delay the decision until the heatwave is over.

A public consultation on Rosebank was set to wrap up on Sunday while a consultation on Jackdaw finished last week.

Before any formal decision is taken, the results of the consultations have to be considered by the Offshore Petroleum Regulator for Environment and Decommissioning, a regulatory body which is part of the Energy Department.

The final decision will rest with Miatta Fahnbulleh, the Energy Secretary, who will be mindful of following due process to ward off any legal challenge from campaigners if the sites are approved.

Industry leaders and Scottish politicians have all made clear that the decisions Mr Burnham takes over the projects will determine the course of the UK’s oil and gas industry.

The Scottish Tories on Monday warned Mr Burnham that failing to approve the schemes was a “life and death” decision.

Andrew Bowie, a shadow energy minister, said Mr Burnham should “stop the small talk and get Britain drilling again.”

He said: “Labour’s decision on both Jackdaw and Rosebank could be the difference between life and death for an industry that has supported the UK for generations.”

Neil McCulloch, chief executive of Adura, which is developing both projects, also called on the Prime Minister to approve the schemes.

“Rosebank and Jackdaw are nationally significant projects. Together, they can provide more domestically produced energy, support high-quality jobs and apprenticeships, generate substantial economic activity and tax revenues and give the UK’s world-class energy supply chain confidence for the future,” he said.

Jackdaw and Rosebank have become politically charged after a row over Labour’s policy on the North Sea.

The Government, under Ed Miliband, the former energy secretary, has pushed to wind down North Sea oil and gas exploration as part of its net zero drive.

However, figures such as Donald Trump have questioned the decision, calling the UK a “bankrupt country” because of its stance while also urging Mr Burnham to open up the North Sea.

Approving Jackdaw is relatively easy because the project is a so-called “tie-back” – meaning the gas it produces will feed into existing infrastructure.

This approach fits with the latest restrictions on production, meaning it is easier for Mr Burnham to use existing rules to approve the proposal.

It is also seen as more politically acceptable because the gas it produces will raise UK production by 6pc – with all of Jackdaw’s gas entering the country’s pipelines.

Rosebank is partly a tieback too – but only for gas. The gas will be pumped into a pipeline that will take it directly into the UK gas grid.

However, the oil will be sucked into a floating storage vessel which will be taken away by tanker.

Rosebank’s approval is also contentious because of its ties to Norway.

Adura is co-owned by Norway’s state-controlled oil company Equinor, which has spent billions on the project.

Its spending commitment was underpinned by a promise Sir Keir Starmer made to Anders Opedal, the company’s chief executive, before the 2024 election that Rosebank would get final approval.

Those billions will be wasted if Mr Burnham blocks the site.

Tor Wara, vice chair of Norway’s energy policy committee, has called on Labour to keep its promises to approve Rosebank.

Asked whether Mr Burnham should heed Sir Keir’s pledge, he said: “Yes, absolutely. Access to plentiful and affordable energy is fundamental for human welfare and progress.

“In addition to the fact that banning exploration will make energy more expensive in the UK, it will also make other energy exporters richer.”