NORTH Sea operators are to press ahead with the development of two major oil and gas fields despite the project being ruled as “unlawful” in a landmark court ruling.
On Thursday a judge upheld a legal challenge brought by Greenpeace and Uplift at the Court of Session in Edinburgh over decisions to give approval to the Rosebank oil field north west of Shetland and the Jackdaw gas field off Aberdeen.
Environmental campaigners argued that the UK Government and North Sea Transition Authority (NSTA) had acted unlawfully when granting consent to the projects.
The former Tory-led UK government approved Shell’s proposals to develop the Jackdaw field in 2022, and cleared Equinor and Ithaca Energy’s plans to drill in the Rosebank field in September 2023.
They said the environmental impact assessments did not take into account downstream emissions resulting from the burning of the extracted fuels.
In a judgement published on Thursday, Lord Ericht said the decision to grant consent was unlawful, and ruled the consent should be “reduced” (quashed) adding the operators will have to resubmit environmental impact assessments (EIAs) for the project.
However, Shell and Norwegian firm Equinor will still go ahead with work on the Rosebank and Jackdaw North Sea projects and will resubmit their consent applications despite the ruling.
Thursday’s court decision follows the Supreme Court ruling in the Finch case last year, which determined approvals for fossil fuel projects must account for all downstream emissions.
The new environmental assessments must await guidance from the UK Labour Government which is due sometime in the Spring.
It was ruled on Thursday that the two North Sea oil and gas projects can continue development works while the arrangements for a revised environmental impact assessment are completed.
However, production from the fields will not begin until revised environmental consents are in place for each project.
Offshore Energies UK chief executive David Whitehouse said the UK Government must get the new guidance for environmental impact assessment “right”.
He said: “The revised environmental impact assessment process which manages these consents must be robust and must be delivered at pace.
“Our domestic oil and gas remain a strategic asset for the UK. Industry takes its environmental responsibilities and the goal of net zero seriously which is why we need a robust process which provides clarity to investors, enables timely and predictable decisions, and provides certainty.
He added: “As a society we are in a critical period for shaping the future of the North Sea, the UK’s energy system, the future of those working in the sector, the communities that depend on those jobs, and the wider UK economy. We must get this right.”
The UK offshore oil and gas industry made a commitment to reach net zero by 2050.
The industry has reduced production emissions by 28% since 2018 and is projected to reach a reduction of 50% by 2030.
A Shell spokesperson called for swift action from the UK Government in response to Thursday’s ruling.
They said: “Today’s ruling rightly allows work to progress on this nationally important energy project while new consents are sought.
“We have spent more than £800 million since the regulator approved Jackdaw in 2022.
“Swift action is needed from the Government so that we and other North Sea operators can make decisions about vital UK energy infrastructure.”
An Equinor spokesperson added: “We welcome today’s ruling and are pleased with the outcome which allows us to continue with progressing the Rosebank project while we await new consents.”
