A judge has revoked the production permits of Britain’s two largest offshore oil and gas projects, halting their production of fossil fuels due to concerns over greenhouse gas emissions.
Lord Ericht, the presiding judge, ordered the cessation of operations at the Jackdaw gas field and the Rosebank oil project in the North Sea, which are managed by Shell and Equinor, respectively. He determined that “the private interest of members of the public in climate change outweighs the private interest of the developers.”
This ruling by the Scottish Court of Session represents a significant win for environmental organisations Greenpeace UK and Uplift, both of which have been actively opposing further development of oil and gas resources in the North Sea.
The decision poses a substantial setback for Shell, as the Jackdaw gas field was projected to supply 6% to 7% of the UK’s gas requirements. Similarly, Equinor’s Rosebank project, which was expected to attract nearly £7 billion in investment and generate hundreds of millions in taxes, is now impacted.
The judicial review of the Jackdaw and Rosebank projects followed a Supreme Court decision in a separate case initiated by activist Sarah Finch. Finch argued that the emissions resulting from burning fossil fuels must always be taken into account when approving new drilling sites.
In response to the ruling, both Equinor and Shell have pledged to continue their development efforts on the projects. They are also preparing to submit new permit applications that will address future emissions from their customers.
Ultimately, the approval of these new permits will rest with Energy Secretary Ed Miliband, who has openly opposed the initiation of new oil and gas projects.
Previously, the government had issued permits for the Jackdaw and Rosebank projects without factoring in future emissions.
Philip Evans, senior campaigner at Greenpeace UK, stated that the ruling signifies “the end of an era where governments approve new drilling sites without considering their climate impacts. The courts have validated what climate activists have long asserted: Rosebank and Jackdaw are unlawful, and their complete climate effects must now be thoroughly evaluated.”
Approved over two years ago, the Jackdaw gas field was designed to develop four new production wells connected to an unmanned platform located 150 miles east of Aberdeen. Shell has invested £800 million into the project, which has the potential to produce nearly 7 million cubic meters of gas daily—sufficient to supply 1.4 million homes.
The Jackdaw reservoir presents one of the UK’s most formidable engineering challenges, as the gas lies beneath three miles of rock at extremely high temperatures of nearly 200°C and pressures of 1,200 atmospheres. With drilling already well underway, Shell faces significant costs to ensure the field’s safety if the project is halted.
Should the project proceed, the extracted gas would be transported to the Shearwater gas hub via a 20-mile pipeline. From there, it would enter a longer pipeline system that brings the gas ashore at St Fergus in Scotland, integrating it into the UK gas network.
Similarly, the Rosebank project, situated 80 miles west of Shetland, is exceptionally demanding. The water depth at the site reaches 3,600 feet, and the Rosebank field itself is located an additional 5,200 feet beneath the seabed. The field is estimated to hold up to 500 million barrels of recoverable oil, which would be transferred to a massive floating production, storage, and offloading vessel permanently anchored above the site.
Blocking these projects may result in substantial compensation claims from the companies against the government. Developers typically face billions of pounds in initial setup costs, which they might seek to recover.
The North Sea Transition Authority, the government’s regulatory body, commented on the decision: “We acknowledge the court’s ruling and are currently reviewing the judgement.”
