Production at Britain’s biggest undeveloped oil and gas field could be delayed for months after equipment from a rig was accidentally spilled into the North Sea, the Guardian can reveal.
Andy Burnham’s new government is under pressure from the fossil fuel industry to allow oil to be extracted from the Rosebank site despite opposition from climate campaigners and some Labor MPs.
Rosebank, located about 80 miles northwest of Shetland, was believed to be ready to produce oil before the end of the year, pending ministerial approval.
Adura, the company responsible for Rosebank, now says it expects that to happen sometime in 2027. According to industry estimates, the field will produce 300 million barrels of oil over its 25-year life.
Some MPs believe that increased domestic production of oil and gas will help tackle the cost of living, a central focus of the new prime minister, by improving energy security amid global instability, while green campaigners believe the impact of farm exploitation on the UK economy will be minimal.
However, the delay at Rosebank means production from the field is unlikely to affect the UK’s energy supply over the winter months. Licenses for Rosebank and another site, Jackdaw, were granted under the Conservatives but operations were halted after a court challenge by environmental groups.
The new energy secretary, Mita Fahnbola, is expected to decide on the future of the fields when a consultation on their emissions ends in August.
Earlier this week, Adura told the BBC that the Jackdow site, about 150 miles east of Aberdeen, could produce gas as early as October.
However, preparations for oil production at Rosebank have been hampered by a rigging incident, which occurred on April 18. No workers were injured, but two central pieces of drilling equipment, including a safety valve, were dropped 1,100 meters to the sea floor.
The platform, rented by Adura from Norwegian company Odfjell Drilling, was taken to a shipyard in Bergen for repairs. It is now back in Rosebank but still not working.
Oddfjel Drilling said in internal documents that the rig could be out of action for up to four months. The Guardian understands that this means some oil wells will be completed well behind schedule.
Burnham faces demands from trade unions and opposition parties to increase North Sea production. Some Labor MPs say the oil and gas industry, which is centered around Aberdeen, could face collapse without new investment.
Sally Jameson, the Cabinet Office minister, has also argued that greater domestic production of oil and gas would give the UK greater control over energy costs. Others worry that it will have no real impact on bills, while the climate is taking a toll.
Mike Rader, of the Labor Environment Campaign, said there was no evidence that new drilling would save jobs in the long term.
The Guardian revealed that just 27 direct full-time jobs would be created by Jack Dow, one of the largest remaining gas fields in the North Sea, according to Adora’s publicly filed environmental impact assessment.
Ed Miliband, the new Foreign Secretary, previously described the Bank’s proposals as “climate sabotage” when Labor was in opposition. However, discussions are believed to have taken place in recent weeks on how to allow new drilling without breaching Labor’s 2024 manifesto pledges, in which it pledged not to issue new licenses but to honor existing ones.
Several environmental groups are considering whether they will have grounds to take legal action over any government decision to allow new drilling.
Angelique Papantonio, a lecturer in environmental law at the University of Hull, said that while a fresh challenge would be a “long shot”, it would be more likely to succeed if based on “environmental issues of the past” such as ecosystem disruption, pollution and potential health impacts.
“It could be argued that these developments cannot be ignored when making decisions with potentially high environmental impacts,” he said.
“In theory, it could be difficult [Fahnbulleh] Claim it [the government] took all the necessary precautions without a detailed risk assessment of the impacts of drilling on the marine environment, climate and human health.
Areba Hamid, co-executive director of Greenpeace, which challenged the original licensing decision, said approval of the fields would make “zero difference” to energy bills and create some jobs.
“Despite these modest gains, we may be perpetuating a polluting industry that is fueling heat waves and sending a devastating signal to our international allies,” he said.
Oddfjell Drilling declined to comment. Adora did not respond to a request for comment.
