Burnham finally approves Jackdaw drilling – but energy secretary ‘set to reject Rosebank oilfield’

The energy secretary is reportedly leaning towards rejecting the Rosebank gasfield, just hours after approving plans to begin drilling at Jackdaw in the North Sea after months of speculation over the decision.

Despite the US president urging the UK government to "go full blast” on drilling in the North Sea, the government looks poised to reject the second gasfield.

A ruling on Rosebank – which would emit around seven times the carbon of Jackdaw and would produce oil mainly for export – is expected later this year.

Energy secretary Miatta Fahnbulleh gave approval for Jackdaw on Wednesday, in a move she said will “support the country’s energy security with homegrown gas this winter”.

But the government is facing backlash from environmental campaigners, who have called the decision “deeply disappointing” and warned it would result in “supercharging the climate chaos hitting families here and abroad”.

In what would be a victory for campaigners, sources told the Guardian Ms Fanhbulleh is minded to refuse approval for the Rosebank oilfield off Shetland, which would be one of the biggest in the North Sea.

However, the Department for Energy Security and Net Zero dismissed the reporting as speculation.

She told the newspaper the rationale behind Jackdaw does not apply to Rosebank, insisting the UK would rely on gas as it made the transition to net zero, adding that it would be better to take it from relatively low-carbon sources in the North Sea than importing it.

“One is a gasfield that caters for the domestic market, while the other is an oilfield that is mainly for export,” she said.

Wednesday’s decision on Jackdaw ends months of speculation about the future of the project, which owner Adura said could deliver around 6 per cent of UK North Sea gas production.

However, the government has conceded that Wednesday’s decision will not bring household energy bills down, because gas produced in the North Sea is sold at the same price as gas on the international market - prices which have risen because of the conflict in the Middle East.

Ms Fahnbulleh told LBC: “It's really that important we're honest about this. That was not a consideration in the decision because it won't mean cheaper bills.

“This was about energy security and having homegrown energy. And it was also because we thought it was compatible with our climate commitments.”

The drilling project is one of two – alongside the Rosebank oilfield – which were approved by the previous Conservative government.

Both were approved for drilling licences in June 2022, but this was overturned by the Scottish courts after a challenge from environmental campaigners.

Prime minister Andy Burnham said the government remained committed to renewable energy but was taking a “pragmatic” approach to the North Sea.

He said: “I welcome the energy secretary’s decision, which will protect hundreds of jobs and help keep millions of homes warm this winter.

“At a time when people are really struggling, it’s right that we look in a responsible way at maximising the existing energy reserves we have in Britain that could help.”

Speaking at Prime Minister’s Questions, he also said he has asked the chancellor and energy secretary to look into removing standing charges from gas bills - a daily charge passed onto the customer, even if they use no energy. The fixed cost covers the cost of running the energy network, as well as government levies.

But environmental campaigners criticised the government’s decision to approve the Jackdaw oilfield, which they said would be “supercharging the climate chaos hitting families here and abroad”.

Ami McCarthy, head of politics for Greenpeace UK, said: “Approving Jackdaw shows the toxic grip fossil fuel lobbyists still hold over our energy policy.

“Andy Burnham promised pragmatism, but there is nothing pragmatic about rubber-stamping a project that won’t lower energy bills, won’t boost energy security and will create just 27 full-time jobs.”

Meanwhile, left wing Labour MP Richard Burgon told The Independent that the decision to approve Jackdaw was “absolutely terrible”, warning: "It will do nothing to lower people's energy bills or improve our energy security.”

He added: "Investing in renewable energy is the way to do that. The government has got this badly wrong. It must not repeat the same mistake with Rosebank."

Mr Burnham has faced pressure from environmental groups to “stick to the spirit of Labour’s manifesto commitment” and refuse consent for either of the schemes.

The 2024 manifesto committed to issuing no new oil and gas licences for the North Sea. But proponents of Jackdaw and Rosebank within the party have argued that neither is a new fossil fuel field, given the wheels were in motion to tap them ahead of Labour coming to power.

The two developments have often been clubbed together after they were both blocked by courts, but Whitehall decisions will be made separately.

Pressure has increased on the government to approve the Rosebank oilfield, with the boss of the firm behind the Jackdaw project saying approval of the second oil and gas scheme should now follow.

Adura chief executive Neil McCulloch said: “Our attention now turns to Rosebank. It follows Jackdaw in the regulatory process, but the case for approval is equally strong. We believe that applying the same rigorous, evidence-based approach can lead to a similarly positive decision.”

The US president - who is a vocal critic of the transition to clean energy - also piled pressure on the government to approve the second project, posting to Truth Social: “The UK has started drilling in the North Sea, one of the greatest and most prosperous areas of OIL in the World.

“They should go FULL BLAST!!! This will make the U.K. very wealthy again. TAKE DOWN THE COSTLY AND RIDICULOUS WINDMILLS!”

A Department for Energy Security and Net Zero spokesperson said: “This is speculation. As the energy secretary has said, each project will be assessed on its own merits.”