Equinor Warns UK Could Become 'Uninvestable' Over Delayed Rosebank and Jackdaw Approvals

Norwegian energy giant Equinor has issued a stark warning that the United Kingdom could be viewed as an "uninvestable" destination for future oil and gas development if the government refuses to approve two major North Sea projects. The caution came directly from Anders Opedal, the company's chief executive, who said the firm would be forced to reconsider its long-term commitment to the UK should ministers reject new drilling at the Rosebank and Jackdaw fields.

In an interview with the BBC, Opedal acknowledged the gravity of the situation, stating that the central question would become whether the UK remains a viable place to invest. He expressed hope that matters would not reach that point, but conceded that Equinor would need to adopt a hard-nosed assessment of its future plans if approval were denied. His comments underscore the mounting tension between the UK's climate commitments and its desire to maintain domestic energy production.

The two fields at the centre of the dispute are Rosebank, described as the largest undeveloped oil and gas discovery in UK waters, and Jackdaw, a smaller but more advanced project. Rosebank lies roughly 80 miles north-west of the Shetland Islands in the North Atlantic and is estimated to contain up to 500 million barrels of oil and gas. Both sites are operated by Adura, a joint venture between Equinor and Shell, while Aberdeen-based Ithaca Energy holds a 20% stake in Rosebank.

The approval process has become politically charged because the Labour government pledged in its election manifesto to ban new oil and gas licensing. Despite that commitment, the government is now weighing whether to grant final consent to the two projects, which were initially greenlit by the previous Conservative administration. A Scottish court ruling subsequently delayed development after environmental campaigners successfully argued that consent had been granted without properly assessing the climate impact. A public consultation on the matter closed in August, leaving Energy Secretary Miatta Fahnbulleh to make the final call.

Opedal pointed out that Rosebank's exploration licence dates back a quarter of a century, having been awarded in 2001. The discovery was confirmed in 2004, and the final investment decision was taken in 2023. He argued that the UK could produce more of its own energy, describing the situation as a political choice rather than a geological or technical constraint. He noted 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.

The Equinor chief also expressed cautious optimism that Prime Minister Andy Burnham's stated preference for a pragmatic approach to oil and gas would result in both projects being approved. Nevertheless, he described the current period of uncertainty as an uncomfortable position for the company and its partners, who have already invested substantial sums in preparing the sites for production.

Adura has previously indicated that Jackdaw could begin supplying gas to UK households as early as this winter if approval is granted promptly, as construction work on the project is already 99% complete. That timeline highlights the potential immediate benefit to UK energy security, particularly as the country faces rising energy prices and forecasts suggesting domestic production will halve by 2035.

The UK already depends on Norway for approximately half of its gas needs, and the Norwegian government has continued to issue new exploration licences in its own North Sea waters. Equinor has projected that its production will remain at current levels until the middle of the next decade, reinforcing its position as a critical supplier to the UK market. The company's threat to scale back investment therefore carries significant implications for Britain's future energy supply.

Opposition to the projects remains fierce. Tessa Khan, executive director of Uplift, an organisation campaigning for the UK to move away from fossil fuel production, argued that new drilling at Rosebank would not reduce consumer bills and represented a bad deal for the country. She contended that the field is overwhelmingly intended for oil exports, which would primarily enrich Equinor and its part-owner, the Norwegian government, while leaving Britain with high energy costs and a shrinking workforce. Khan also warned that Labour's climate credibility is on the line.

A government spokesperson defended the North Sea as a vital national asset, insisting that oil and gas will continue to play an important role in the energy system for decades to come alongside the transition to clean power. The spokesperson added that any decision would take into account all relevant evidence, including environmental assessments and the representations received during the consultation process.

The standoff places the UK government in a delicate position. Approving the fields would breach a manifesto pledge and provoke backlash from environmental groups and some within Labour's own ranks. Rejecting them could deter future investment from major international energy companies, accelerate the decline of the North Sea industry, and increase reliance on imported fuel. The decision will also be watched closely by investors who view regulatory stability as essential for long-term commitments in capital-intensive sectors such as offshore oil and gas.

For Equinor, the warning is not merely rhetorical. The company has a long history in the UK continental shelf and has been a reliable supplier of both oil and gas. Opedal's remarks suggest that a rejection would prompt a strategic pivot away from Britain toward other regions where regulatory conditions are more predictable. Such a shift could have cascading effects on jobs, tax revenues, and the broader supply chain that supports the North Sea industry.

As the Energy Secretary prepares to announce her decision, the UK finds itself at a crossroads. The outcome will signal whether the country prioritises its legally binding climate targets or seeks to maximise domestic energy production to bolster security and economic activity. Either way, the choice will shape the future of the North Sea for decades and determine whether companies like Equinor continue to see the UK as a place worth investing in.