EQUINOR THREATENS UK INVESTMENT IF NORTH SEA PROJECTS BLOCKED
A major European energy company has warned it may withdraw investment from the UK if two key North Sea oil and gas projects are blocked. Anders Opedal, chief executive of Norwegian firm Equinor, stated that rejecting the Rosebank and Jackdaw fields would represent a “major setback” for energy security and job creation.
INVESTMENT WARNING AT LONDON FORUM
Speaking at the Energy Intelligence Forum in London, Opedal emphasized the potential consequences of blocking the projects. “We and others will of course then ask if the UK is investable,” he said. In a subsequent BBC interview, he described the decision as a “political choice,” noting that the North Sea oil and gas industry originated on the UK side. “The question will be: is the UK investable in the future? I hope it will not come to that,” he added.
The comments drew immediate attention from industry leaders. Russell Borthwick, chief executive of the Aberdeen & Grampian Chamber of Commerce, warned that rejecting the projects could signal to international investors that Britain is not a reliable destination for capital. “Rosebank and Jackdaw have become a test of whether Britain is genuinely serious about economic growth, energy security and attracting international investment,” Borthwick said. “Approving them should be the easiest decision ministers make all year.”
POLITICAL AND ENVIRONMENTAL TENSIONS
The projects, developed by Adura—a joint venture between Equinor and Shell—with Ithaca Energy holding a 20% stake in Rosebank, have faced opposition from climate activists. Their approval under the previous Conservative government was overturned in court following an appeal by campaigners including Greenpeace, necessitating new applications in 2025. A decision is expected imminently, delayed until after a Thursday by-election where Green Party leader Zack Polanski contests the seat of former Prime Minister Keir Starmer.
Jackdaw, located 150 miles east of Aberdeen, could begin production this winter if approved, as much of its infrastructure is already in place. Rosebank, near the Shetland Islands, is projected to deliver oil in the first half of 2027, with Adura set to become the largest fossil fuel producer in the UK North Sea. However, opposition to North Sea drilling has intensified since Labour assumed power, with the party’s 2024 manifesto ruling out new licences and the windfall tax raised to an effective 78% on oil and gas profits.
Borthwick argued that global energy companies have multiple options for deploying capital, and the UK is providing fewer incentives each year. “Rejecting Rosebank or Jackdaw would send an extraordinarily damaging message to international investors that even after committing billions, securing approvals and building infrastructure, the UK can still move the goalposts,” he said. The potential rejection could lead to fewer jobs, reduced investment, lower tax revenues, and greater reliance on imported energy at a time when security has never been more critical.
POLITICAL IMPLICATIONS OF THE BY-ELECTION
Campaigners, including Greenpeace, previously overturned the projects’ approval in court, emphasizing environmental concerns. The government’s delay until after the by-election reflects its need to balance Labour’s 2024 manifesto commitment to halting new North Sea licences with economic pressures. The result may signal whether political considerations outweigh environmental activism in shaping energy policy.
FINANCIAL SECTOR CONCERNS PRE-BUDGET
Chancellor John Healey met with executives from major banks, including Lloyds, NatWest, Barclays, HSBC, Nationwide, and Santander, to discuss fiscal pressures ahead of his October 28 Budget. The financial sector expressed worries over potential tax increases, arguing such measures could restrict lending and dampen economic growth. Bank leaders warned that higher taxes might drive investment abroad, echoing broader concerns about the UK’s investment climate.
Chris Hayward, policy chairman at the City of London Corporation, voiced “hugely concerned” over possible tax raids on banks. He cautioned that increased levies would limit lending capacity and risk accelerating capital flight to lower-tax jurisdictions like New York. The Chancellor, while avoiding specifics, acknowledged the “challenging fiscal picture” facing the government’s spending priorities, including social care reform and defense expansion.
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