Burnham 'to approve new North Sea drilling' on Monday - reports
Senior industry sources told The Scotsman: “We think the announcement is going to happen.”
Andy Burnham is set to announce plans for new oil and gas drilling in the North Sea when he becomes prime minister on Monday, according to reports.
The BBC has reported that Mr Burnham will set out his position on new oil and gas developments on his first day in office.
Senior industry sources told The Scotsman: “We think the announcement is going to happen”
Crucial to the debate over the future of the industry is whether two North Sea oil and gas fields - Rosebank and Jackdaw- will get the go ahead.
Regulators approved their development in 2022 and 2023 under the then Conservative government, but were overturned in 2025 after a legal challenge.
Consultations are now underway by The Offshore Petroleum Regulator for Environment and Decommissioning (OPRED) to decide whether both fields should be opened up.
Preparatory works have already begun at both Rosebank and Jackdaw by Adura, the joint venture between Shell and Norwegian state-owned Equinor.
Industry sources said on Saturday they believed “Jackdaw could get going this year and Rosebank early next year”.
Labour won the 2024 general election with a manifesto pledge to end new oil and gas exploration licences, but many, including those within the party, believe approving Rosebank and Jackdaw would not go against the commitment - with the projects seeking environmental consent rather than a new drilling licence.
Adura said the two projects represented a combined investment of £10.8 billion, with more than three-quarters of that investment in the UK.
Across their producing lifespans, the two projects are expected to generate £28.7 billion in economic activity in the UK economy (GVA), the company said.
It further claimed more than 3,500 jobs would be created at peak construction with 880 high-quality jobs sustained throughout production, paying an average salary of approximately £85,850.
Earlier this month, Jack Middleton, the SNP MSP for Aberdeen Central and former special adviser to John Swinney broke ranks with his party and explicitly called on Labour ministers in London to approve the two fossil fuel developments,
Concerns have been raised about the environmental impact of the two projects, with climate scientists and the International Energy Agency starkly warning that no new fossil fuels projects should be allowed if global emissions targets are to have a chance of remaining on track.
As much as 35.8m tonnes of carbon could be emitted from burning the gas at Jackdaw, the equivalent of around 90 per cent of Scotland’s total emissions in 2023.
Enrique Cornejo, policy director at Offshore Energies UK (OEUK), said: “Last week, a broad coalition of voices including trade unions and key sectors of the economy such as chemicals and manufacturing came together to call on the incoming Government to back domestic oil and gas production. That message was reinforced by new independent polling showing that more than seven in ten people believe the UK should produce oil and gas from its own waters rather than rely on imports.
"The development of Rosebank and Jackdaw alongside all the other North Sea resources, would help strengthen energy security, support skilled jobs and investment across the UK, and ensure we make the most of our own resources while building a lower-carbon future.”
"While we use oil and gas, it is common sense that we prioritise our own production, our own jobs , value in our economy, delivered with lower emissions than imports."
Senior Green Party figures on Saturday urged the incoming prime minister not to break “one of Labour’s flagship manifesto commitments”.
Green MP Adrian Ramsay said: “Andy Burnham says he takes the climate and nature crises seriously, but words are no substitute for action.
“With heatwaves causing deaths, wildfires and extreme weather across the country, approving new oil and gas drilling is exactly the wrong response and will do nothing to bring down energy bills.”
The past week has seen a significant lobbying effort in favour of new licences, with energy industry leaders and trade union bosses publishing an open letter to Labour MPs calling for them to back North Sea oil and gas.
They argued this would reduce reliance on fossil fuel imports from “volatile regions” that involved higher emissions, making it a “more responsible choice for the climate”.
Opponents of further drilling say the global oil market means extra production in the North Sea would make no difference to energy bills, while being more expensive to extract.
There is also no guarantee that additional North Sea oil will be used in the UK, which exports most of the oil it already produces.
Support for new drilling could also complicate Mr Burnham’s choice of chancellor, a decision he said on Friday he had not yet made.
One of the leading candidates is thought to be Energy Secretary Ed Miliband, who has been a strong supporter of Labour’s manifesto commitment on the North Sea, while reports suggest Home Secretary Shabana Mahmood may be in line for the crucial role instead.
The Labour Party was contacted for comment.
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