Labour urged to approve Rosebank 'by Christmas' amid speculation oil project could be blocked

Ms Fahnbulleh has approved the Jackdaw gas project, concluding that the project by Adura - a joint venture between Shell and Equinor - would not stop the UK meeting its 2050 net zero target.

The climate impact of the Jackdaw project is estimated to be around 35.8 million tonnes of carbon over its 11-year lifespan, compared to the annual climate emissions of Scotland at around 39 million tonnes of carbon. Rosebank could burn up to 250 million tonnes of carbon.

Speculation has emerged that Ms Fahnbulleh is minded to turn down Adura’s environmental consent application for its Rosebank project.

READ MORE: Jackdaw bosses set out Tornado gas hopes as government says it will fast-track other North Sea projects

Rosebank is also harder to justify on energy security grounds. Jackdaw, which is estimated to provide up to 6 per cent of the UK’s gas demand at its peak was justified, in part, as it will feed directly into the grid.

But the vast majority of oil contained in the Rosebank project, around 80 miles off the west coast of Shetland, will be exported overseas for refining.

Conservative MP for Aberdeen South, Douglas Lumsden, has written a letter to Ms Fahnbulleh, claiming that failing to approve Rosebank would be “cruel, unnecessary and uneconomic”.

Despite the vast environmental impact and lack of an energy security justification for Rosebank, the Conservatives are focusing on the economic benefits of approving Rosebank - with an estimated 525 long-term jobs potentially created by the project. The Jackdaw gas field will create just 27 direct full time jobs.

READ MORE: Jackdaw gas field approval cannot be distraction from wider crisis facing Aberdeen and the North Sea

Ms Fahnbulleh’s officials has reportedly said she is minded to reject Rosebank.

Speaking in Aberdeenshire this week, she said: “One is a gas field that caters for the domestic market, while the other is an oil field that is mainly for export.

“It is right that we judge each application in its own right, and it is absolutely critical that the decision is consistent with our climate obligations, our carbon budgets and the end destination we need to get to with the energy transition.”

Mr Lumsden said he was “deeply concerned” by reports Rosebank could be rejected and has written to Ms Fahnbulleh, urging her to grant environmental consent by the end of the year.

READ MORE: Jackdaw: what does it actually mean for business, you and energy prices

In his letter, Mr Lumsden, said: “The city of Aberdeen and my constituents in Aberdeen South depend on the continued extraction and exploration of oil and gas fields.

“There are simply not enough jobs in the renewable sector to replace the jobs in the oil and gas sector. I simply do not understand why this government fails to understand this.

“To deny this project would be to unnecessarily condemn the prospects of many of my constituents. It is cruel, unnecessary and uneconomic.”

He added: “If the Prime Minister wants to see growth in every postcode, then he must approve Rosebank, scrap the energy profits levy, and remove Labour’s ban on all new licences for the people and businesses of Aberdeen South.

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“I hope you will seriously consider the consequences of your actions should you fail to approve Rosebank.

“My constituents expect this government to do the right thing. I urge you to approve Rosebank before Christmas and ask you to confirm that a decision will be announced by then.”

But climate campaigners have called for Rosebank to be blocked.

A UK government spokesperson said: “This is speculation. As the Energy Secretary has said, each project will be assessed on its own merits.”

Ministers have been clear that Jackdaw’s approval will not lead to a reduction in energy bills.

At Westminster on Thursday, the Ms Fahnbulleh said Andy Burnham is clear the UK government “can’t faff around” on lowering energy bills, after being asked by the Prime Minister to look at scrapping standing charges from gas bills.

She said she was examining “all the options,” and acknowledged that low-income consumers who use large amounts of energy could be left worse off if the costs simply moved to the unit rate part of the gas bill.

She argued that the public “absolutely hates” not having control over the fixed fee added to energy bills and that “even shifting it into the unit rate gives people that agency”.

Meanwhile, Scottish Labour called on First Minister John Swinney to publish his government’s energy strategy after more than 1,380 days of waiting.

Daniel Johnson, the party’s energy spokesman, said it is “ludicrous” the strategy could reportedly take until late 2027.

The Scottish government stance on energy has shifted in recent years, from Nicola Sturgeon’s presumption against new oil and gas to a softer approach under Mr Swinney.

The government has still not confirmed its move away from opposing oil and gas by publishing a finalised energy strategy.

The draft strategy was first published in January 2023, with the final version expected in the summer of 2024.

Mr Swinney has declined to give a timeline for the strategy, saying this week it will be published “in due course”.

Mr Johnson said the government must do so urgently.

He said: “It is ludicrous that Scotland could be waiting until late 2027 for an energy strategy that was first drafted in January 2023.

“Workers and businesses need certainty about the future of oil and gas, renewables and nuclear.

“They cannot afford another year of drift, making it harder for companies to plan ahead and invest in Scotland’s energy future, putting future projects and skilled jobs at risk.

“John Swinney must stop kicking the can down the road.

“He must publish the strategy next week when Parliament returns. Scotland’s energy workforce deserves answers, not another delay.”

Energy minister Stephen Gethins said: “Unfortunately the Scottish Government does not have full control over Scotland’s energy policy.

“Over the coming weeks, significant decisions will need to be made by the UK Government that will have a long term impact on Scotland’s energy policy such as the SSEP (Strategic Spatial Energy Plan) which is sitting on the Secretary of State’s desk. That must benefit Scotland’s long-term ambitions.

“The Scottish Government committed in the Programme for Government to publishing a refreshed energy strategy to provide long-term certainty for industry and communities and we will deliver that.

“The UK Government must also replace the Energy Profits Levy with a fair system to protects jobs, energy security and investment in our energy sector.”