Labour blasted over North Sea as energy giant threatens to pull investment if Rosebank is blocked

 Labour is facing a mounting backlash after a European energy giant threatened to scrap investment in the UK if two major projects in the North Sea are blocked.

Anders Opedal, the boss of Norwegian giant Equinor, said the refusal to back the Rosebank and Jackdaw oil and gas fields would be a ‘major setback’ and ‘contradictory to energy security, to job creation’.

Speaking at the Energy Intelligence Forum in London, he added: ‘We and others will of course then ask if the UK is investable.’

Describing the decision as 'a political choice', Mr Opedal said getting rid of oil and gas before renewables are fully developed is like 'tearing down your house before you have new house’.  

He said: 'The question will be: is the UK investable in the future? I hope it will not come to that. It's a political choice. The North Sea oil and gas industry started on the UK side.' 

The comments were seized on by industry experts and politicians who urged the government to give the projects the go-ahead after years of delay.  

Reform UK energy spokesman Richard Tice said: 'This government’s anti-growth, ideological crusade against our domestic oil and gas sector is driving billions of pounds of investment and thousands of skilled British jobs straight overseas.

'We need full backing for Rosebank and Jackdaw and a common-sense energy policy that puts British jobs British energy independence first.'

Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce, said: ‘When the chief executive of one of the world’s biggest energy companies warns that Britain risks becoming uninvestable, the UK Government should be extremely worried.

‘Rosebank and Jackdaw have become a test of whether Britain is genuinely serious about economic growth, energy security and attracting international investment. Approving them should be the easiest decision ministers make all year.

‘If the Government gets this wrong, it should not be surprised when the investment, the jobs and eventually the companies themselves go elsewhere.’

Rosebank and Jackdaw are being developed by Adura, a joint venture controlled by Equinor and Shell. Ithaca Energy also has a 20 per cent stake in Rosebank.

But they have become a focal point for climate activists and opponents to North Sea drilling – including within the Labour government.

They were approved under the previous Conservative administration but that decision was overturned in court after an appeal by campaigners including Greenpeace – forcing fresh applications to be lodged in 2025.

A decision could come within days having been delayed until after Thursday’s by-election where Green Party leader Zack Polanski is seeking to win the seat of former Prime Minister Keir Starmer.

Much of the infrastructure needed for the Jackdaw gas field 150 miles east of Aberdeen is already in place, meaning it could begin production this winter if approved.    

Rosebank, near the Shetland Islands, could deliver oil in the first half of 2027, with Adura set to become the largest fossil fuel producer in the UK North Sea.

But opposition to North Sea oil and gas has intensified since Labour came to power.

The party’s 2024 manifesto ruled out new North Sea licences while the windfall tax introduced by the Tories was raised and extended – leaving firms facing an effective rate of 78 per cent on oil and gas profits.

Mr Borthwick said: ‘Global energy companies have choices about where they deploy billions of pounds of capital, and Britain is giving them fewer and fewer reasons to choose us. Rejecting Rosebank or Jackdaw would send an extraordinarily damaging message to international investors that even after committing billions, securing approvals and building infrastructure, the UK can still move the goalposts.

‘The consequences would stretch far beyond Aberdeen. It would mean fewer jobs, less investment, lower tax revenues and greater reliance on imported energy at a time when energy security has rarely mattered more.

‘There is also a staggering contradiction at the heart of this debate. Britain will continue to need oil and gas for decades, yet we are contemplating turning away investment in our own resources while spending billions importing those same products from overseas.’

A spokesman for the Department for Energy Security and Net Zero said: 'We do not comment on speculation.

'The North Sea remains a vital national asset and oil and gas will continue to play an important role in our energy system for decades to come — alongside transitioning to clean power to protect jobs and tackle the climate crisis.

'Any decision will take into account all relevant evidence, including environmental assessments and public representations received during the consultation process.'