The UK's former energy secretary has said the government's decision to not challenge legal attempts to stop drilling going ahead at Rosebank and Jackdaw as the "final blow" for the North Sea.
Greenpeace and Uplift have jointly brought judicial reviews to stop the developments after a Supreme Court decision in June ruled the environmental impact of emissions from burning fossil fuels must be considered in planning applications for entire extraction projects, rather then purely the emissions produced in extraction.
The UK Government, which yesterday released environmental guidance for oil and gas firms to provide "stability for industry, support investment, protect jobs, deliver economic growth, and meet its climate obligations", now won't challenge the cases.
The guidance is necessary in light of a Supreme Court ruling that has implications for the assessment of new development consents. The landmark Finch ruling requires regulators to consider the impact of burning oil and gas, scope three emissions, in the assessment for new projects.
Licenses for Rosebank, jointly owned by Equinor and Ithaca and the largest untapped oil reserve in the North Sea, and Jackdaw, which is entirely owned by Shell, have not been revoked, though it's now up to the energy companies to continue to defend the decision in court.
The UK Government insist it will save taxpayer money and is set to consult later in the year on implementing its manifesto pledge not to issue new oil and gas licences to explore new fields.
Energy minister Michael Shanks said his Labour government is "committed to protecting current and future generations of good jobs", however industry experts and political opposition have been quick to criticise the decision.
Claire Coutinho, the now shadow energy secretary, said: "No other major economy is shutting down its domestic energy supply as the UK now is. We get roughly half of our gas from the North Sea, but we will now be more reliant on imports with higher carbon emissions."
Meanwhile, a Shell spokesperson said: "Jackdaw was approved in 2022 and we are carefully considering the implications of [the] announcement by the Government.
"We believe the Jackdaw field remains an important development for the UK., providing fuel to heat 1.4 million homes and supporting energy security, as other older gas fields reach the end of production."
Equinor said in a statement, that the firm "welcomed regulatory approvals for the Rosebank development in 2023."
The firm added: "We’re currently assessing the implications of today’s announcement and will maintain close collaboration with all relevant stakeholders to advance the project. Rosebank is a vital project for the UK and is bringing benefits in terms of investment, job creation and energy security."