UK Approves £3.8 Billion Rosebank Oil and Gas Project in the North Sea

The British government has granted Equinor and Ithaca Energy a development and production license for the Rosebank project, a $3.8 billion oil and gas field northwest of the Shetland Islands. The project is being developed in line with the North Sea Transition Deal, which aims to halve emissions from energy production in the North Sea by 2030 and achieve net zero emissions by 2050. The approval comes despite objections from environmentalists who argue that increased oil and gas production will worsen the climate crisis. However, Energy Security Minister Claire Coutinho states that the project will help secure Britain’s energy independence and aid in the transition to cleaner energy.

The Rosebank project is estimated to contain around 300 million barrels of recoverable oil and is designed to reduce CO2 emissions. Equinor and Ithaca Energy have made a final investment of $3.8 billion to advance Phase 1, with production scheduled to begin in 2026-2027. The project will create jobs and generate £8.1 billion of direct investment, with the majority going to UK-based companies. TechnipFMC and Odfjell Drilling have already secured contracts related to the project.

Equinor, a long-standing UK energy partner, plans to invest over £10 billion in the UK by 2030, with at least two-thirds going towards renewable energy and decarbonisation solutions.

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