The United Kingdom’s Energy Secretary, Miatta Fahnbulleh, is leaning towards rejecting approval for the Rosebank oilfield in the North Sea, a decision that could mark a major setback for the oil industry and a victory for climate campaigners.
Officials familiar with the discussions say no final decision has been made, with an announcement expected before the end of 2026. Andy Burnham could ultimately make the final call if disagreements emerge, potentially after receiving representations from Chancellor John Healey.
Fahnbulleh’s position follows the government’s approval of the smaller Jackdaw gasfield, which is expected to begin production within weeks. She has argued that the two projects should be assessed separately because Jackdaw would supply gas to the domestic market, while most of Rosebank’s oil is expected to be exported.
According to estimates cited in the report, Rosebank would generate about seven times the carbon emissions associated with Jackdaw, raising concerns about its compatibility with the UK’s climate commitments and carbon budgets.
The Department for Energy Security and Net Zero dismissed reports of a likely rejection as speculation, stressing that each project would be assessed on its own merits.
The proposal has also exposed divisions within the governing Labour Party. Some MPs have warned that approving Rosebank could trigger a political backlash, while climate campaigners argue that expanding fossil fuel production would undermine efforts to cut emissions.
Former minister Catherine West said new oil developments were not the answer to employment challenges in the North Sea, while Labour MP Afzal Khan questioned whether a project on Rosebank’s scale could be justified.
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Fahnbulleh has also pledged to channel future oil and gas tax revenues into a new energy wealth fund supporting renewable energy, nuclear power and other clean-energy projects. She said the fund would receive £2 billion in the budget, although the precise revenue sources and expected contributions remain unclear.
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