A significant division has surfaced within the cabinet regarding the future of the Rosebank oilfield. Chancellor John Healey is reportedly in favor of moving forward with the controversial North Sea project, potentially placing him at odds with Energy Secretary Miatta Fahnbulleh, who holds final authority on the decision.
Fahnbulleh is understood to be leaning toward rejecting the proposal. She previously granted approval for the smaller Jackdaw gasfield but has indicated that the justifications for that project do not extend to Rosebank. According to the Energy Secretary, while the UK will continue to rely on gas during the transition to net zero, it remains critical to ensure all new applications align with climate obligations and carbon budgets. According to labour MPs, On Wednesday that there would be a big pushback in the party if Rosebank was approved, though most are prepared to accept the arguments that Jackdaw was a necessary part of the transition to net zero.
Highlighting the distinction between the two fields, Fahnbulleh noted, “One is a gasfield that caters for the domestic market, while the other is an oilfield that is mainly for export.” She emphasized that each application must be judged on its own merits.
The Chancellor hinted at his backing for the project last week, suggesting he expects future oil and gas revenues to help fund a new national energy wealth scheme.
During recent comments, he indicated that a £2bn allocation for this fund would be included in the upcoming budget. While the Chancellor noted that investment in clean energy schemes—such as nuclear and renewables—should stem from industry tax revenues, the specific sources and financial projections remain subject to clarification in the budget. However, say exactly which tax revenues would be given to the fund, or how much that may generate. “The chancellor will make those details clear in the budget,” she said, she could not.
Should a conflict between the ministers persist, the Prime Minister would likely be tasked with making the final determination. Reports suggesting that Mayor Andy Burnham and Healey have sought to advance the project were met with silence from Downing Street, which stated the matter rests with the Energy Secretary. According to no 10 declined to comment on Sunday after the Mail on Sunday, Andy Burnham and Healey had agreed to try to push the project through, saying it was a matter for the energy secretary.
If the government chooses to reject Rosebank, it would be a major victory for environmental campaigners and a notable setback for the North Sea energy sector. Conversely, approval could trigger significant backlash within the Labour Party, where many MPs have already discussed potential parliamentary votes to voice dissent, despite having accepted the necessity of the Jackdaw project.
Officials have confirmed that Fahnbulleh has not yet reached a final conclusion. The decision is expected before the end of the year, with assessments weighing the project’s environmental impact against its contribution to UK energy security. Rosebank is projected to produce emissions approximately seven times higher than the Jackdaw field. However, that Healey backs approving the licence, which is on hold over concerns about the project’s environmental impact, it is understood.
A spokesperson for the Department for Energy Security and Net Zero declined to comment on speculation, affirming that the North Sea remains a vital national asset. The statement added that any official decision will be based on comprehensive evidence, including public consultations and environmental impact assessments. 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, the North Sea remains a vital national asset.
