Shares of Ithaca Energy have experienced a surge of up to 8.5% following the approval of the Rosebank oil field development.
The British oil exploration company, holding a 20% stake in this North Sea site, is currently the highest-performing firm on the FTSE 250, with the broader sector witnessing a 0.7% gain today.
In the previous month, Ithaca disclosed that it was compelled to abandon projects and decrease production due to the “significant impact” of the Government’s windfall tax. The firm, possessing a 70% stake in the Cambo oil field license, anticipated in August a minimum 6% drop in production next year due to reduced investment.
For the initial phase of the Rosebank field, Ithaca Energy will collaboratively invest $3.8 billion (£3.1 billion) with the Norwegian company, Equinor.
The approval of drilling in the Rosebank oil field comes as the price of Brent crude heads back toward $95 a barrel amid tightening supplies in the market.
The #UK must be honest about where we are going to get the gas we need up to 2050 and beyond.
— Share_Talk ™ (@Share_Talk) September 27, 2023
Union leaders have endorsed the sanctioning of drilling in the North Sea’s Rosebank oil field, asserting that it will facilitate investments in carbon capture and safeguard employment.
Gary Smith, the General Secretary of GMB, stated:
It’s imperative for the UK to be transparent about our sources of gas up to 2050 and beyond.
Securing it from reliable domestic sources greatly surpasses increasing our reliance on imported gas, particularly in a progressively unpredictable world.
Assuming more responsibility for our own gas supply will uphold quality union jobs, both directly and throughout the broader supply chain.
Importantly, it will also pave the way for investments in carbon capture and advancements in clean energy that are essential to address the climate crisis.
For the UK to enhance energy self-sufficiency and compete globally for climate-related employment, a well-thought-out strategy is vital, not prohibitions.
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