Granting the development and production consent for the Rosebank field to owners Equinor (80%) and Ithaca Energy (20%), the North Sea Transition Authority said it had done so in accordance with its ‘published guidance and taking net zero considerations into account throughout the project’s lifecycle’.

Rosebank is the largest undeveloped field in the UK, located around 130 km north-west of Shetland in approximately 1,100 metres of water depth. Total recoverable resources are put at around 300mn barrels of oil, with the $3.8bn Phase 1 development targeting an estimated 245mn barrels of oil. At peak, the field is expected to produce 69,000 b/d of oil and 44mn cf/d of gas.

The field is to be developed via subsea wells tied back to the redeployed Petrojarl Knarr floating production storage and offloading vessel (FPSO) capable of handling 70,000 b/d of oil, with start-up planned in 2026–2027. Oil will be transported to refineries by shuttle tankers, while gas will be exported through the West of Shetland pipeline system to mainland Scotland.

The FPSO has been designed to be ‘electrification-ready’ and the project partners Equinor and Ithaca Energy plan to collaborate with government and industry to ‘pursue a regional solution for power from shore to Rosebank and nearby fields to minimise carbon emissions from production’. According to Ithaca Energy, with electrification, it is estimated that the Rosebank lifetime upstream CO₂ intensity would decrease from 12 kg to about 3 kg CO₂/boe.

The project partners also report that, according to an independent socio-economic study by Wood Mackenzie and Voar Energy, it is estimated that Rosebank will create £8.1bn of total direct investment over the lifetime of the field, of which 78% is likely to be invested in UK-based businesses. It is also expected to support around 1,600 jobs during the height of the construction phase of the project, and will continue to support approximately 450 UK-based jobs during the lifetime of the field.

The Rosebank decision was welcomed by the UK government, which stated that as it took forward ‘a pragmatic, proportionate and realistic response to the path to net zero, a key part of this will be maintaining our domestic oil and gas industry which underpins our energy security and boosts the UK economy’.

According to government figures, the oil and gas industry adds £17bn/y to the economy, supporting around 200,000 jobs and providing around £50bn in tax revenue over the next five years, which it says ‘can be used to support the shift to cleaner forms of energy’.

Meanwhile, Offshore Energies UK (OEUK) CEO David Whitehouse said: ‘This is good news for our jobs, our economy and our secure energy future. By promoting homegrown production, we avoid costlier, higher carbon imports while making more reliable supplies of energy in the UK, for the UK. We need more projects like Rosebank if we are serious about delivering a homegrown UK energy future.’

Noting that the UK has some 283 fields in the North Sea, with over 180 due to stop producing in the next decade, he added: ‘If these are not replaced, we will import 80% of the oil and gas the UK will need at a higher cost to the consumer, our economy, and ultimately the climate.’

Whitehouse continued: ‘Imported energy cost the UK £117bn last year... Surely, with our industry committed to eliminating emissions, it makes sense to prioritise our own domestic production and jobs. This is a boost to UK offshore energy supply chain companies. The bulk of companies investing in opportunities like floating offshore wind, hydrogen, carbon capture and storage and decarbonising our economy require the cashflow from a stable and predictable oil and gas business to fund these opportunities.'

However, the decision to green light development of Rosebank was decried by many industry observers and environmental campaigners.

Friends of the Earth climate campaigner Danny Gross said: ‘This is yet another colossal failure of leadership from a government that seems determined to ignore the scientific warnings on the climate crisis. Giving the green light to Rosebank will send UK emissions soaring while failing to boost energy security or reduce bills...The government should be investing in real solutions to the challenges we face by prioritising homegrown renewables and developing a nationwide insulation programme – not pouring more gas and oil on a burning planet.’

Meanwhile, Bob Ward, Policy and Communications Director at the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science, said: ‘This is a disappointing decision, particularly on top of last week’s announcement by the Prime Minister that he is weakening key climate change policies. The UK government has ignored the conclusions and advice of experts, such as the Intergovernmental Panel on Climate Change and the UK Climate Change Committee, that the development of further fossil fuel infrastructure would be incompatible with efforts to limit global warming to 1.5°C.’

Ward continued: ‘The development of Rosebank will make very little difference to the UK’s energy security or the prices consumers pay for heating and electricity. The development of clean domestic energy, such as onshore and offshore wind, and the electrification of the UK economy offers the only pathway to sustainable, secure and affordable energy.’