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British Prime Minister Keir Starmer signaled that his administration would not obstruct the development of the Rosebank oil and gas field, despite a court ruling that had previously blocked the project.
This development comes amid the government’s previous commitment to halt the issuance of new licenses for oil and gas exploration due to climate change concerns. However, the government had clarified that it would not revoke existing licenses.
The fate of two significant projects, Shell (LON:SHEL)’s Jackdaw and Equinor’s Rosebank, had been uncertain after their approvals were overturned in court due to challenges from climate campaigners. In a statement to Sky News on Thursday, Starmer said, "I can’t preempt the decision, but you know, we did say that where a licence had already been granted, we wouldn’t interfere with them."
The Prime Minister also acknowledged the role of oil and gas in the country’s energy future, stating, "I’ll be open with you, oil and gas is part of the future mix for decades to come." This stance suggests a potential path forward for the Rosebank field, which Equinor and its partner Ithaca Energy (LON:ITH) aim to develop.
The project, one of the last major known oil reservoirs in Britain, has been at the center of controversy, with climate activists demanding a stop to new fossil fuel production activities.
The Rosebank field, located in the North Sea, is seen as a critical asset for Equinor and the region’s energy industry. The recent court decision and the government’s response highlight the ongoing tension between energy development and environmental concerns.
The British government’s position on existing licenses provides a measure of stability for companies operating in the sector while maintaining a commitment to addressing climate change issues.
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