UK's Rosebank Oil Field Gets Green Light
By Yusuf Khan and Christian Moess Laursen
An oil field northwest of Shetland, off the coast of Scotland, has been given the go-ahead to start pumping oil and gas, despite concerns from environmental groups about starting new fossil-fuel projects.
The Rosebank oil field was given the green light by the North Sea Transition Authority on Wednesday for owners Equinor and Ithaca Energy to start drilling, though this is not expected to start until the second quarter of 2025 with production expected between 2026 and 2027. London-listed Ithaca said the parties will jointly invest $3.8 billion in the field, with Equinor owning 80% of the project, and the remaining owned by Ithaca.
"Rosebank stands as the largest undeveloped field in the U.K., and with the receipt of development consent from the NSTA, we are now poised to embark on a journey that will not only provide critically important domestic energy but also ignite substantial economic impact," Ithaca's Executive Chairman Gilad Myerson said.
At its peak the project should produce 69,000 barrels of oil and 44 million cubic feet of gas a day. Equinor said total recoverable resources are estimated at around 300 million barrels of oil. The project is expected to take place in two phases, the first recovering 245 million barrels of oil.
The U.K. government said the project will boost energy security, with a direct investment of 8 billion pounds ($9.72 billion) according to estimates from Equinor.
The move to approve the site comes as the U.K. government looks to loosen rules around environmental regulations, for example pushing a ban on sales of new petrol and diesel cars to 2035, though it says it is committed to net-zero.
"We are investing on our world-leading renewable energy but, as the independent Climate Change Committee recognize, we will need oil and gas as part of that mix on the path to net zero and so it makes sense to use our own supplies from North Sea fields such as Rosebank," the U.K. government's energy security secretary, Claire Coutinho, said in a statement.
At 0812 GMT, Ithaca Energy's shares were up 7.7% at 175.00 pence, while Equinor traded 1.3% higher at NOK351.20.
Write to Yusuf Khan at yusuf.khan@wsj.com and Christian Moess Laursen at christian.moess@wsj.com
(END) Dow Jones Newswires
September 27, 2023 04:43 ET (08:43 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
These Stocks Are (Still) Powering the Bull Market
-
5 Undervalued Energy Stocks to Play the AI Data Center Demand Boom
-
After Earnings, Is Lowe’s Stock a Buy, Sell, or Fairly Valued?
-
5 Stocks With the Largest Fair Value Estimate Cuts After Q1 Earnings
-
10 Stocks With the Largest Fair Value Estimate Increases After Q1 Earnings
-
Markets Brief: Inflation Back in the Spotlight
-
AI Is Booming, but Consumer Spending Is Slowing. Which Will Prevail in the Stock Market?
-
What’s Happening In the Markets This Week
-
3 Dividend Stocks for June 2024
-
After Earnings, Is Alibaba Stock a Buy, Sell, or Fairly Valued?
-
MongoDB Earnings: Slashing Valuation as Execution and Macro to Blame for Lower Guidance
-
Marvell Earnings: We Raise Our Medium-Term AI Forecast and Bring Our Valuation Up to $75
-
Zscaler Earnings: Impressive Traction in Emerging Products Drives Sales Growth for the Quarter
-
Dell Earnings: Raising Valuation on Strong AI, but the Stock Remains Severely Overvalued
-
After Earnings, Is Nvidia Stock a Buy, Sell, or Fairly Valued?
-
The 10 Best Companies to Invest in Now