Drilling of Oil in voltain basin
The controversial Rosebank offshore development off Shetland has been granted consent by regulators.
Located 80 miles west of Shetland, Rosebank is the UK’s largest untapped oil field and is estimated to contain up to 300 million barrels of oil.
Development and production approval has been given to owners Equinor and Ithaca Energy, following reassurances over environmental concerns.
The plan has faced widespread criticism due to its impact on climate change.
Supporters of the project say it is vital for the energy security as it will reduce reliance on imports.
Its owners say it will create about 1,600 jobs during the height of construction, support 450 UK-based jobs during its lifetime, and provide “a significant amount of tax revenues for the treasury”.
It comes after the UK government said in July that it would issue hundreds of new licences for oil and gas exploration in the North Sea.
But last month 50 MPs and peers from all major parties raised concerns Rosebank could produce 200 million tonnes of carbon dioxide and urged then Energy Secretary Grant Shapps to block it.
It has been predicted that Rosebank could produce 69,000 barrels of oil a day at its peak, and about 44 million cubic feet of gas per day in its first 10 years.
Production is expected to begin in 2026/27 but a senior executive with Norweigan state oil company Equinor has admitted the new field will not be electrified at that point.
Electrification of the extraction process is one of the key industry pledges for reducing its production emissions.
The oil and gas regulator, North Sea Transition Authority, said approval had been awarded “in accordance with our published guidance and taking net zero considerations into account throughout the project’s lifecycle”.
