OEUK Says Urgent Decisions Needed on Rosebank, Jackdaw
In a statement sent to Rigzone recently, industry body Offshore Energies UK (OEUK) said “urgent decisions” are needed on the Rosebank and Jackdaw projects “for national security”.
OEUK noted that its call for urgency comes as the Offshore Petroleum Regulator for Environment and Decommissioning (OPRED) “continues its assessment of the projects and whether they meet all regulatory and environmental requirements”.
The industry body highlighted in the statement that Adura recently submitted its response to the regulator’s request for further information. The regulator will, in turn, make a recommendation to the Secretary of State who will decide on whether to grant consent for the projects, OEUK pointed out.
“Together, the projects are expected to support GBP 28.7 billion [$37.9 billion] of economic activity, 3,500 jobs at peak construction, and significant tax revenues for the public purse - including GBP 1.4 billion [$1.8 billion] before the end of this Parliament and GBP 3.8 billion [$5.0 billion] before 2034,” OEUK said in the statement.
“They would also make a material contribution to UK energy supply, accounting for around 10 percent of gas production at a time of geopolitical uncertainty,” it added.
“If consent is granted this summer, Jackdaw alone could provide more than six percent of UK gas supply by this winter, enough to heat 1.4 million homes,” it continued.
OEUK went on to state that consents for both projects are “crucial, given the complementary supply chain and the positive cumulative impact on UK economic growth and energy security”.
In the statement, OEUK Chief Executive David Whitehouse said, “we cannot import energy security”.
“UK oil and gas is energy we have control over, produced in our own waters under our own standards. It is a strategic asset for the country and one we should be using,” he added.
“In an uncertain world, imported energy relies on routes and shipping that can be disrupted or blocked. UK production cannot be held up by blockades in the same way. No other source of oil and gas is as secure as what we produce at home,” he continued.
Whitehouse went on to state that Rosebank and Jackdaw “are ready to deliver, supporting jobs, economic value, energy security, and delivered with lower emissions than imports”.
“Without a functioning regulatory process that provides consents for both projects, a bottleneck is created, holding up billions of pounds of additional investment,” Whitehouse warned.
The OEUK Chief Executive highlighted that the UK “is exposed - importing over 40 percent of its energy in an increasingly volatile world”.
“Expanding renewables is essential, but with oil and gas still supplying around 75 percent of our needs, relying on imports over our own North Sea resources makes little sense,” he said.
“Right now, the UK risks playing checkers while others are playing chess when it comes to energy policy. Other countries are making long-term decisions to secure supply, and we should be doing the same,” he warned.
“With the latest information now with the regulator, an urgent decision recognizing their national importance is needed,” Whitehouse went on to state.
Adura notes on its site that it has interests in ten North Sea producing oil and gas assets - which comprise Buzzard, Clair, Gannet, Mariner, Nelson, Penguins, Pierce, Schiehallion, Shearwater, and Victory - and two projects in execution, which comprise Jackdaw and Rosebank. The company also holds a number of exploration licenses, the site shows.
In a statement posted on its website on June 19, Adura said it had submitted responses to a request for further information from OPRED for both the Jackdaw and Rosebank fields.
“The two projects, which are at an advanced stage of development and construction - with over GBP 3 billion [$3.9 billion] invested to date - require reconfirmation of regulatory approval before production can commence,” Adura said in that statement.
“The Jackdaw platform is already installed in the North Sea and in the very final stages of preparations for starting up. It is tied-back to the existing Shearwater Hub, using infrastructure already in place to bring gas onshore at St Fergus in Aberdeenshire,” Adura added.
“The retrofitted Petrojarl Rosebank Floating Production, Storage and Offloading (FPSO) vessel arrived at its location West of Shetland last month,” it continued.
In the statement, Adura CEO Neil McCulloch, said, “with timely approval of Jackdaw and Rosebank, Adura can help unlock significant benefits; the energy that Britain needs - at lower associated emissions and within existing carbon budgets - alongside a major economic advantage in the national interest.”
Rigzone contacted the UK Department of Energy Security and Net Zero (DESNZ), which OPRED is a part of, and HM Treasury (HMT) for comment on OEUK and Adura’s statements.
In response, a DESNZ spokesperson told Rigzone that OPRED identified that further information was required from the developer for the Secretary of State to reach a decision on whether or not to agree to a grant of consent. The spokesperson said this was part of the normal regulatory process and confirmed that the developer had submitted this further information.
The DESNZ spokesperson highlighted to Rigzone that Environmental Impact Assessments “are subject to a robust process, with decisions being made on the facts of each case” and said OPRED “is considering the information already submitted by the developer and the representations received during the public notice period”.
“The Secretary of State will be making a decision as to whether or not to agree to the grant of consent in due course,” the spokesperson added.
“It would be inappropriate to comment further on individual projects,” the spokesperson concluded.
At the time of writing, HMT has not responded to Rigzone.
To contact the author, email andreas.exarheas@rigzone.com
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