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New UK North Sea drilling decisions likely face fresh scrutiny
The next UK prime minister is expected to avoid confirming approval for the Rosebank and Jackdaw fields while OPRED consultations remain underway, with deadlines closing in August.
BBC Business reports that the final weekend before Andy Burnham enters Downing Street is focused on whether his government will move on plans for new drilling in the North Sea. The outlet says he is unlikely to approve the Rosebank and Jackdaw fields on day one, even though the previous Conservative government gave the projects the go-ahead.
The approvals are being reconsidered after a legal challenge that environmental groups, including Greenpeace and Uplift, brought over ministers allegedly not considering the full climate impact from fossil fuel production. BBC Business notes that the Offshore Petroleum Regulator for Environment and Decommissioning, or OPRED, has a lengthy process still under way, and consultations for the applications close in August.
While Rosebank and Jackdaw are described as the most pressing and controversial items on Burnham's energy agenda, the BBC also points to exploration licences as a major issue. Labour's 2024 manifesto pledged to ban new licences, a promise BBC Business says was carried out by Energy Secretary Ed Miliband after Labour took power.
The UK government has already agreed to a concession allowing tie-backs, which lets production continue in unlicensed areas connected to infrastructure in already licensed blocks. BBC Business adds that other potential options under consideration include changing or scrapping the Energy Profits Levy, a windfall tax introduced when oil prices spiked after Russia's invasion of Ukraine, with a headline rate of 78%, though the story cuts off as it moves to details.