UK risks 'uninvestable' status if oil fields blocked, Equinor warns

Norwegian energy giant Equinor has cautioned that it may shy away from further investments in the United Kingdom if new oil and gas drilling fields at Rosebank and Jackdaw fail to secure government approval.

Anders Opedal, head of the Norwegian state-owned oil firm and co-owner of the sites, told the BBC that the primary question moving forward will center on whether the UK remains an investable market, noting his hope that the situation does not escalate to that point. He added that the company would need to evaluate the situation strictly if new drilling is ultimately rejected.

The warning arrives as the UK government prepares to deliver its final verdict on whether to permit oil and gas extraction at Rosebank and Jackdaw, despite a previous pledge by Labour in its election manifesto to ban new licences. Both projects are operated by Adura, a joint venture between Equinor and Shell, with Aberdeen-based Ithaca holding a 20% stake in Rosebank.

Rosebank stands as the largest undeveloped oil and gas field across the United Kingdom, situated in the North Atlantic roughly 80 miles north-west of the Shetland Islands. Opedal noted that the exploration licence was originally awarded in 2001, with a discovery made in 2004 and a final investment decision reached in 2023, before facing delays due to a Scottish court ruling following environmental legal challenges.

"The question will be: is the UK investable in the future? I hope it will not come to that."

Anders Opedal

Stock photo for illustration only, not from the actual event

Presently, the UK depends on Norway for half of its gas requirements. Meanwhile, the Norwegian government continues to issue fresh exploration licences in its own North Sea territory, with projections indicating UK production will drop by half by 2035 without new developments.