Equinor Warns UK Could Become 'Uninvestable' If Rosebank and Jackdaw Oil Fields Are Blocked

The head of Norwegian energy giant Equinor has issued a stark warning that the United Kingdom could be viewed as an "uninvestable" destination for future energy projects if the government refuses to approve two major North Sea oil and gas developments. Anders Opedal, chief executive of the state-controlled company, said the decision facing ministers over the Rosebank and Jackdaw fields would carry significant consequences for the UK's reputation as a place to do business.

In comments made to the BBC, Opedal explained that Equinor, which holds a stake in both sites, would be forced to reconsider its long-term commitment to the UK if the projects were rejected. "The question will be: is the UK investable in the future? I hope it will not come to that," he said, adding that the company would "have to take a hard view about it" should permission be denied.

The intervention comes at a critical moment for the UK government, which is preparing to make a final ruling on whether to grant approval for oil and gas extraction at Rosebank and Jackdaw. The decision sits awkwardly alongside a pledge in Labour's election manifesto to ban new drilling, creating tension between the party's climate commitments and the pressing need to bolster domestic energy supplies.

Both fields had initially received the green light from the previous Conservative administration. However, progress was halted following a legal challenge from environmental campaigners, who successfully argued that consent had been granted without proper consideration of the projects' climate impact. A Scottish court ruling forced the government to revisit the proposals and conduct a fresh public consultation, which concluded in August.

Responsibility for the final verdict now lies with Energy Secretary Miatta Fahnbulleh. A government spokesperson said the North Sea remains a "vital national asset" and that oil and gas would "continue to play an important role in our energy system for decades to come." The spokesperson added that any decision would factor in "all relevant evidence, including environmental assessments and public representations received during the consultation process."

Rosebank, situated roughly 80 miles north-west of the Shetland Islands in the North Atlantic, is the largest undeveloped oil and gas field in the UK. It is estimated to contain as much as 500 million barrels of recoverable resources. Opedal noted that the exploration licence for the site dates back a quarter of a century, with the licence awarded in 2001, the discovery made in 2004, and a final investment decision reached in 2023.

Both Rosebank and Jackdaw are operated by Adura, a joint venture between Equinor and Shell. Aberdeen-based Ithaca Energy also holds a 20% stake in Rosebank. According to Adura, Jackdaw could begin supplying gas to British households as early as this winter if approval is granted promptly, as construction work on the project is already "99% complete."

Opedal expressed cautious optimism that Prime Minister Andy Burnham's stated commitment to a "pragmatic approach to oil and gas" would result in both projects being given the go-ahead. Nevertheless, he described the current uncertainty as "an uncomfortable position to be in." He also pointed out that the UK could increase its own production, describing the situation as "a political choice" and noting that the North Sea industry began on the British side of the border, with shared geology meaning several fields cross the maritime boundary.

The debate has intensified amid rising energy prices and growing concerns over the UK's energy security. Domestic production is forecast to halve by 2035, while the country already depends on Norway for half of its gas imports. Norway's government has continued to grant new exploration licences in its own North Sea waters, a contrast that critics say puts the UK at a competitive disadvantage.

Equinor has projected that Norwegian production will hold steady at current levels until the middle of the next decade. Opedal's warning suggests that without a supportive regulatory environment, the UK risks losing out on the investment and jobs that come with developing its own reserves.

Not everyone supports proceeding with the fields. Tessa Khan, executive director of Uplift, an organisation campaigning for the UK to move away from fossil fuel production, argued that new drilling at Rosebank "won't cut our bills" and represented a "bad deal for Britain." She suggested that the project is "overwhelmingly oil for export" and would primarily benefit Equinor and its part-owner, the Norwegian government, while leaving British consumers with high energy costs and a shrinking workforce.

Khan also warned that Labour's "climate credibility is on the line," reflecting broader concerns among environmental groups that approving the fields would undermine the government's promises on tackling the climate crisis.

The upcoming decision therefore represents a delicate balancing act for ministers. On one side are arguments about energy security, economic investment, and the thousands of jobs tied to the North Sea industry. On the other are environmental obligations, legal challenges, and the political cost of appearing to backtrack on climate pledges.

How the government resolves this dilemma will send a powerful signal to international investors about the UK's appetite for fossil fuel projects—and, as Equinor's warning makes clear, about whether the country is seen as a reliable place to commit long-term capital.