Equinor Warns UK Could Become 'Uninvestable' Over Delayed North Sea Oil Approvals

The head of Norway's state-owned energy company Equinor has cautioned that the United Kingdom could be perceived as an unattractive destination for future investment if the government declines to approve two contested North Sea oil and gas developments. Anders Opedal, the chief executive of Equinor, said in an interview with the BBC that a rejection of new drilling at the Rosebank and Jackdaw fields would force his company to reassess its long-term commitment to British waters.

"The question will be: is the UK investable in the future? I hope it will not come to that," Opedal said, adding that Equinor would "have to take a hard view about it" should ministers decide against allowing the projects to proceed. His comments place fresh pressure on the UK government, which is expected to rule shortly on whether to grant final approval for extraction at the two sites.

The decision carries significant political weight because Labour pledged in its general election manifesto to ban new oil and gas licensing. That commitment now appears to be in tension with the government's stated desire to maintain energy security and protect jobs in the North Sea basin. Ministers have insisted that any final call will weigh all relevant evidence, including environmental assessments and the responses gathered during a public consultation that closed in August.

Rosebank, situated in the North Atlantic roughly 80 miles north-west of the Shetland Islands, is the largest undeveloped oil and gas field in UK waters. It is estimated to contain as much as 500 million barrels of oil and gas. Opedal noted that the exploration licence for the site dates back a quarter of a century, with the licence awarded in 2001, the discovery made in 2004 and the final investment decision taken in 2023.

Both Rosebank and Jackdaw were initially approved by the previous Conservative government, but a ruling from a Scottish court halted progress after environmental campaigners successfully argued that consent had been granted without adequate consideration of the projects' climate impact. The case underscored the growing legal scrutiny facing fossil fuel developments and set the stage for the current review.

Jackdaw and Rosebank are operated by Adura, a joint venture involving Equinor and Shell. The Aberdeen-based company Ithaca also holds a 20% stake in Rosebank. Adura has said that if approval is granted soon, Jackdaw could begin supplying gas to UK households as early as this winter, given that construction at the site is already "99% complete."

The looming decision comes amid renewed debate over Britain's energy security, driven by rising energy prices and forecasts that domestic production will halve by 2035. The UK already sources half of its gas from Norway, whose government has continued to issue new exploration licences in its own sector of the North Sea. Equinor expects production to remain at current levels until the middle of the next decade.

Opedal expressed confidence that comments by Prime Minister Andy Burnham about taking a "pragmatic approach to oil and gas" signalled both projects would eventually be approved. Nevertheless, he described the current uncertainty as "an uncomfortable position to be in." He argued that the UK is capable of producing more of its own oil and gas, describing the situation as "a political choice."

"It's a political choice," Opedal said, noting that the North Sea industry began on the UK side and that both countries share the same geology, with several fields straddling the maritime border. His remarks echo a long-standing industry argument that domestic production can displace imports rather than simply adding to global emissions.

Not everyone accepts that logic. Tessa Khan, executive director of Uplift, an organisation campaigning for the UK to move away from fossil fuel production, said new drilling at Rosebank "won't cut our bills" and represented a "bad deal for Britain." She argued that the field is "overwhelmingly oil for export," which would enrich Equinor and its part-owner, the Norwegian government, while leaving British consumers with high energy bills and a shrinking workforce.

Khan also warned that Labour's "climate credibility is on the line," a pointed message to a government that has positioned itself as a leader on decarbonisation. Her intervention highlights the divide between those who see new North Sea fields as a bridge to a lower-carbon future and those who view them as incompatible with the UK's climate targets.

A government spokesperson defended the sector's ongoing role, describing the North Sea as a "vital national asset." The spokesperson added that "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." They reiterated that any decision would take into account all relevant evidence, including environmental assessments and public representations received during the consultation process.

The final decision now rests with Energy Secretary Miatta Fahnbulleh, whose ruling will be scrutinised by investors, environmental groups and energy industry figures alike. For Equinor and its partners, a swift approval would allow Jackdaw to deliver gas within months and keep Rosebank on track for development. A rejection, by contrast, could prompt the Norwegian company to redirect capital elsewhere and reinforce concerns that the UK is becoming a difficult place to invest.