BP exit shows it is time to approve Jackdaw and Rosebank oilfields, say north east business leaders

Last week, the energy giant announced it was selling its North Sea business, which employs around 1,100 people after 60 years in the oil and gas industry.

Aberdeen and Grampian Chamber of Commerce says UK ministers must now approve the Rosebank and Jackdaw oilfields as the industry cannot afford further uncertainty.

Russell Borthwick, chief executive of the chamber, said: “BP’s announcement should serve as a wake-up call.

“It is another stark reminder of what prolonged policy uncertainty means in practice. Investment goes elsewhere, businesses lose confidence and the UK’s industrial capability is gradually eroded.

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“The UK will continue to require oil and gas throughout the energy transition. The choice is whether that demand is met by lower-emissions domestic production, supporting British jobs and investment, or by importing energy from overseas with a higher carbon footprint.”

It has written to the Offshore Petroleum Regulator for Environment and Decommissioning to say the environmental assessments of both projects must look at both the impact on domestic production, but also the environmental and economic impact of replacing domestic energy with higher-emissions imports.

Mr Borthwick argues that Jackdaw, to the east of Aberdeen, would be "significantly less carbon intensive” than imported oil and gas, while Rosebank’s emissions, to the west of Shetland, would be “substantially below the global average” for oil production.

It is expected Jackdaw and Rosebank would generate £28.7 billion in economic value, support more than 3,500 construction jobs, sustain 880 long-term operational roles, create 125 apprenticeships and generate £1.4bn in tax revenues during the current parliament.

Mr Borthwick added: “Our own energy transition survey found that 93 per cent of businesses believe there remains a future for the North Sea if the right fiscal and regulatory framework is in place. What they consistently tell us is that uncertainty is now the single biggest barrier to investment.

"The Prime Minister has spoken about taking a pragmatic approach to the North Sea. Now is the time to demonstrate that pragmatism by providing timely, evidence-based decisions on Jackdaw and Rosebank, replacing the energy profits levy with the promised oil and gas revenue levy, and restoring the stable long-term investment environment our industry needs."

Both oilfields are subject to consultation until August 10 and August 17.

However, environmental campaigners say BP’s decision "underscores the geological fact that this is now an ultra-mature basin that has been in decline for years”.

Tessa Khan, executive director of Uplift, said: “Oil companies make decisions based on the interests of their shareholders. With around 93 per cent of the ageing North Sea’s recoverable reserves already extracted, BP has logically decided there’s more money to be made elsewhere.

“For politicians to pretend that oil and gas is now a path to growth and secure jobs is a denial of these facts and a betrayal of workers.

“More drilling isn’t a jobs strategy nor will it take a penny off bills or make a meaningful difference to energy security – most of what’s left in the basin is oil, the vast majority of which is exported.

She said the UK Government “must not cave into the demands” of the oil industry and instead focus on “genuine reindustrialisation”.