Britain approves development of largest oil field in North Sea

British regulators approved the development of the largest undeveloped oil field, Rosebank, which is located in the North Sea 130 km west of the Shetland Islands. The field, whose leading operator is the Norwegian company Equinor, could produce between 300 million and 500 million barrels of oil.

Equinor will produce oil together with its British partner, Ithaca Energy. Their shares in the project are 80% and 20%, respectively. The developers estimate that direct investment in this project will amount to approximately £8.1 billion, of which £6.3 billion will be invested in British companies. The daily production volume can be 69 thousand barrels.

The Rosebank field was discovered in 2004, but the start of its development was delayed, including due to protests by opponents of the use of fossil fuels. However, in July this year, against the background of the energy crisis and rising fuel prices, the British government came out with statement that it intends to actively issue licenses for oil and gas production in the North Sea to ensure the kingdom’s energy independence.

According to UK Prime Minister Rishi Sunak, “While we are making the transition to renewable energy, we still need oil and gas and it makes sense to use our own resources.” By opinion Chancellor of the Exchequer Jeremy Hunt said the government would give “investors the confidence they need to invest in, manufacture in, export from, and support thousands of British jobs.”

Meanwhile, environmental activists warn that burning oil and gas from the Rosebank field will release more than 200 million tons of carbon dioxide. More than 700 scientists and activists spoke out against the development of the field, directing an open letter the Prime Minister of Great Britain, as well as more than 200 organizations, including human rights ones.

Green Party parliamentarian Caroline Lucas called the government’s decision “morally obscene,” saying it would not improve the country’s energy security or lower utility bills, “but it would crush our climate commitments and destroy global leadership.”

Meanwhile, the International Energy Agency recently announced the imminent end of the era of oil, gas and coal. To find out how justified the IEA forecast is, read the material “Fossil fuels are shaping the future”.

Alena Miklashevskaya