Equinor Warns UK Could Become 'Uninvestable' Over Delays to Rosebank and Jackdaw Oil Fields

The head of Norway's state-owned energy company Equinor has issued a stark warning that the United Kingdom could be viewed as an unattractive destination for future investment if the government refuses to approve two major oil and gas developments in the North Sea.

Anders Opedal, the chief executive of Equinor, said a decision to block drilling at the Rosebank and Jackdaw fields would force the company to reassess its long-term commitment to the UK. "The question will be: is the UK investable in the future? I hope it will not come to that," he told the BBC, adding that Equinor would "have to take a hard view about it" should approval be denied.

The intervention comes at a sensitive moment for the UK government, which is preparing to make a final ruling on whether the two projects can proceed. Ministers are weighing the decision against a manifesto commitment made by Labour to halt new oil and gas licensing, creating a politically delicate balancing act between climate pledges and energy security concerns.

Rosebank, situated in the North Atlantic roughly 80 miles north-west of the Shetland Islands, is the largest undeveloped oil and gas field in UK waters. It is estimated to contain as much as 500 million barrels of recoverable oil and gas, making it a prize asset for the companies involved. Jackdaw, a smaller but more advanced project, is located elsewhere in the North Sea and is reportedly almost ready to begin production.

Opedal stressed that the Rosebank project has been in development for decades. The exploration licence was first awarded in 2001, the discovery was confirmed in 2004, and the final investment decision was taken in 2023. He argued that the lengthy timeline demonstrates the industry's patience, but also its need for regulatory certainty.

Both fields were initially approved by the previous Conservative government. However, that consent was later challenged in a Scottish court, where environmental campaigners successfully argued that the climate impact of burning the extracted fossil fuels had not been properly assessed. The legal ruling forced a pause and triggered a public consultation, which closed in August.

Responsibility for the final decision now rests 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 - alongside transitioning to clean power to protect jobs and tackle the climate crisis". The spokesperson added that any decision would consider "all relevant evidence, including environmental assessments and public representations received during the consultation process".

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

Opedal's warning taps into a broader debate about the UK's energy security. Domestic production is forecast to halve by 2035, and the country already imports half of its gas from Norway. The Norwegian government has continued to issue fresh exploration licences in its own North Sea waters, a contrast that Opedal suggested puts the UK at a competitive disadvantage.

He noted that the North Sea oil and gas industry began on the UK side of the maritime border and that the geology is essentially the same on both sides, with several fields straddling the dividing line. "It's a political choice," he said, implying that the UK could produce more of its own energy if it chose to do so.

Not everyone agrees that new drilling would benefit British consumers. Tessa Khan, executive director of Uplift, an organisation campaigning for a transition away from fossil fuels, argued that developing Rosebank would not lower household bills. She described the project as "a bad deal for Britain", pointing out that it is "overwhelmingly oil for export" and would primarily enrich Equinor and its part-owner, the Norwegian government.

Khan also warned that approving the fields would damage Labour's "climate credibility", which she said is now "on the line". Her comments reflect growing pressure from environmental groups who argue that expanding fossil fuel extraction is incompatible with the UK's legally binding climate targets.

The government finds itself squeezed between competing priorities. On one side, industry leaders and energy security analysts warn that declining domestic production without new investment will leave the UK increasingly reliant on imports, exposing consumers to volatile global prices. On the other, climate campaigners and some within Labour's own ranks insist that approving new fields would undermine the country's emissions reduction commitments.

The political backdrop adds further complexity. Rising energy prices have reignited public concern about the cost of living and the reliability of supply, particularly after the volatility seen in recent years. Prime Minister Andy Burnham has spoken of taking a "pragmatic approach to oil and gas", a phrase Opedal said gave him confidence that both projects would eventually receive the green light. Nevertheless, he described the current uncertainty as "an uncomfortable position to be in".

Equinor has predicted that production from its existing UK assets will remain at current levels until the middle of the next decade. But without new fields coming online, that plateau would eventually give way to decline. For a company evaluating where to allocate capital globally, the speed and predictability of regulatory decisions are critical factors.

The final ruling on Rosebank and Jackdaw will therefore be read as a signal of how the UK treats major energy investors. If approval is granted, it could unlock further spending and help sustain thousands of jobs in the supply chain, particularly in Scotland. If it is refused, Equinor's threat to reconsider its UK presence may become more than a warning.

For now, all eyes are on the Energy Secretary. The decision will not only determine the fate of two significant fields but also shape the UK's reputation as a place where long-term energy projects can be permitted, built, and operated. Opedal's message was clear: the choice is political, but the consequences will be felt across the economy for years to come.