Norway’s state‑controlled oil and gas company Equinor told investors on Tuesday that the United Kingdom could become "uninvestable" if the government does not grant final approval to the Rosebank and Jackdaw offshore oil developments, putting future capital inflows at risk.
Equinor’s stance on the licences
Equinor has been pursuing the Rosebank project, a deep‑water field in the West of Shetland, and the Jackdaw development, a smaller on‑shore prospect, for several years. The company expects the UK to grant the necessary licences soon and has signalled that the projects are central to its investment plan for the North Sea. According to reports from energynews.pro, Equinor is preparing to move forward pending a "green light" from the British government.
"Rejection of the Rosebank and Jackdaw projects would be a major setback for the UK’s energy sector and could damage the country’s reputation as an investable market," the CEO told reporters, as cited by TradingView and AOL.com.
UK policy backdrop
The licences are being considered against a backdrop of the UK’s energy‑security strategy, which aims to sustain domestic oil production while meeting net‑zero targets by 2050. Prime Minister Rishi Sunak and Energy Secretary Claire Coutinho have highlighted the importance of North Sea output to reduce reliance on imported gas, especially after the 2022 energy price shock. At the same time, the government faces pressure from climate groups and the broader public to limit new fossil‑fuel projects.
The Financial Times reported that industry leaders warned the UK could earn a reputation of being "uninvestable" if it blocks projects like Rosebank and Jackdaw, echoing similar language used by The Times. Both outlets quoted senior energy executives who argued that the UK’s credibility with global investors hinges on consistent licensing decisions.
Environmental and political opposition
Environmental organisations have mounted a parallel campaign, questioning whether the licences should be granted under the UK's recent commitments to the West Bank settlement sanctions regime. Planning Resource noted that Green groups have asked the government to clarify if the oilfield applications fall within the scope of these sanctions, suggesting legal and reputational risks beyond the immediate investment debate.
While the exact financial scale of the projects has not been disclosed in the articles, Equinor’s broader North Sea strategy involves multi‑billion‑pound investment over the next decade, with significant job creation in the region. The company’s warning signals that any delay could jeopardise these economic benefits.
UK officials have not yet responded to Equinor’s ultimatum. The Department for Business and Trade is expected to announce its decision in the coming weeks, a timeline that will be closely watched by both the energy sector and climate advocates.
The standoff underscores a growing tension in the UK: balancing the need for secure energy supplies and economic growth against the political imperative to transition away from fossil fuels. How the Rosebank and Jackdaw licences are resolved will likely set a precedent for future North Sea investments and could influence the country's standing in the global energy market.
