One of the North Sea's biggest independent producers has called on "sense to prevail" and the UK Government to create the "right fiscal and regulatory environment" for stakeholders in the Buchan Horst project to press on with its development.
Jersey Oil & Gas, which owns 20% of the oil field, said the project could create more than 1,000 jobs, generate "hundreds of millions" in tax revenues, and attract around £1billion of private investment into the UK economy.
But earlier this month the handbrakes were put on the project by NEO Energy - which owns 50% of the development - due to the "level of uncertainty in relation to the UK's oil and gas sector" created by successive UK Governments.
Reporting to the markets on Thursday morning, Andrew Benitz, CEO of Jersey Oil & Gas, called on the government to prioritise homegrown fuels over imports, which come at a greater price to the environment and the consumer.
Mr Benitz said: "Whilst demand for hydrocarbons continues during the energy transition, developing homegrown energy provides the UK with a cleaner and more secure solution than relying on carbon intensive imported fuels.
"The Buchan project has the potential to create over 1,000 jobs across many parts of the UK supply chain and over 200 project related jobs, attract private investment of around £1 billion into the UK economy, generate hundreds of millions in UK tax revenues and deliver accelerated investment in new offshore renewable electricity generation.
"Against that backdrop, we hope that the Government will ensure that sense prevails and the right fiscal and regulatory environment is established to enable the UK's oil and gas industry to continue being a highly valuable contributor to the economy for years to come, whilst we transition to a lower carbon economy."
Development on hold
The Buchan Horst project - in which Serica Energy also has a 30% stake - is already facing "inevitable" delays due to the Finch ruling and Labour's proposed alterations to the Energy Profits Levy (EPL).
Little more than a fortnight ago NEO Energy said it has "taken the decision to materially slow down investment" due to the fiscal and regulatory uncertainty in the UK North Sea.
The knock-on effort from that means the Buchan Horst project, which is the third largest pre-development field in the UKCS, project will be "inevitably delayed".
'Fiscal raids disproportionately impacting British independents'
Jersey Oil & Gas has echoed much of what was said by NEO at the start of September.
In its half-year report, the firm called on the UK Government to aid economic growth by creating more certainty in the energy sector.
The firm said: "Over recent years, the landscape in the UK North Sea has dramatically shifted away from "Big Oil" to smaller British independents like Jersey Oil & Gas, that are fully invested in UK waters.
"Successive unwarranted fiscal raids on our domestic energy industry is disproportionately damaging to these companies, which collectively account for the majority of current production in the region, as well as representing the primary source of future investment potential.
"With economic growth at the heart of the new UK Government's agenda, it is hoped that the on-going fiscal and environmental reviews that the Government is consulting on will not lose sight of the essential importance of implementing measures that support investment, jobs and the acceleration of economic value creation for the UK economy.
"Along with our joint venture partners, over the last twelve months we have been actively engaging with the Government on the critical issues facing the industry and will continue to do so as the consultations progress."
The company's full report can be found here.