UK cabinet split clouds Rosebank oilfield approval decision

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UK cabinet splits on Rosebank oilfield

Highlights

Healey supports approving Rosebank oilfield to help fund an energy wealth fund, but Fahnbulleh leans towards rejection with a decision due by year-end.
A Rosebank rejection would significantly impact the North Sea energy industry, while approval may trigger internal Labour party opposition and potential parliamentary dissent.
Rosebank's emissions would be seven times greater than Jackdaw's, and most output is intended for export, limiting its contribution to UK energy security.

Competing ministerial positions before year-end ruling

As reported by The Guardian, Chancellor John Healey supports approving the Rosebank licence, while Energy Secretary Miatta Fahnbulleh is leaning towards rejecting the project after allowing the smaller Jackdaw gasfield to proceed.

The licence remains on hold because of concerns about the project’s environmental impact. Healey signalled support in comments to ITV when he said oil and gas revenues were expected to help fund a new energy wealth fund, indicating he anticipates income from Rosebank. If the disagreement escalates, the prime minister is expected to make the final decision.

No 10 declines to comment on the reports and says the matter rests with the energy secretary. Fahnbulleh argues the case for Jackdaw does not extend to Rosebank because the UK still needs gas for the transition to net zero, while Rosebank is an oilfield whose output is mainly intended for export.

She says each application must be judged on its own merits and that any ruling must remain consistent with climate obligations, carbon budgets and the long-term energy transition. Officials say Fahnbulleh has not yet made her final decision, with an outcome expected before the end of the year.

Industry stakes and political fallout

A rejection of Rosebank would deal a setback to the North Sea energy industry and hand a significant win to climate campaigners. Approval, however, risks provoking internal opposition within the governing Labour party, where MPs are said to be preparing strong pushback if the project goes ahead.

Some Labour MPs are understood to have discussed ways to force or encourage a parliamentary vote on Rosebank if it is approved, using it to register dissent. While many in the party appear willing to accept Jackdaw as part of the transition to net zero, Rosebank is seen differently because it would generate emissions about seven times greater and is viewed as offering less for UK energy security if most of its oil is exported.

A spokesperson for the Department for Energy Security and Net Zero says the government does not comment on speculation, but adds that the North Sea remains a vital national asset and that oil and gas will continue to play an important role alongside the transition to clean power. The department says any decision will consider all relevant evidence, including environmental assessments and public representations from the consultation process.

Fahnbulleh also says future North Sea revenues are meant to support green energy projects through an energy wealth fund, which she says will receive £2 billion in the budget. She says tax revenues from oil and gas should be invested in renewables, nuclear and other clean energy schemes, although the government has not yet set out exactly which revenues would flow into the fund or how much they would raise.

In our earlier coverage of the Bank of England’s assessment of the energy price shock, Deputy Governor Sarah Breeden said the UK economy has proven more resilient than initially expected, helped by fiscal measures and central bank interventions that supported market stability. She also cautioned that inflation and market volatility remain key risks while energy costs stay elevated, meaning policymakers may need to keep adapting their approach to protect financial and economic stability.

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