Oil and gas fields can be expanded but door closed on new exploration

MOVE GREETED AS A 'MAJOR MILESTONE' BY ENVIRONMENTAL GROUPS

- 

THE UK Government will allow extraction of oil and gas near existing fields as it looks to expand North Sea production without issuing new licences.

Labour was adamant in the 2024 election campaign that new licences would not be issued for oil and gas extraction, but warnings from the industry over the implications of fields like Rosebank and Jackdaw being rejected, and the knowledge that fossil fuels will form part of the UK’s mix in the coming decades, has led to the decision.

Following a months-long consultation, the Government announced the move as part of its North Sea Future Plan yesterday, less than an hour after Chancellor Rachel Reeves rejected calls from Scotland’s north east to scrap the windfall tax on oil and gas giants.

The plan also officially closed the door to new exploration, which was greeted as a “major milestone” by environmental groups.