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A British oil and gas giant is to press ahead with two North Sea projects despite legal threats from green activists.
Ithaca Energy said it hopes to extract the “first oil” from the Rosebank field, west of Shetland, as early as next year while also seeking a licence extension to allow it to develop the Cambo field in the same area.
The two fields are respectively the largest and second largest undeveloped reserves left in UK waters and could produce oil and gas for the next two to three decades once in production.
Ithaca’s pledge to continue development, which was presented alongside its annual results, comes despite attempts by climate campaigners to block the projects.
Last year environmental groups including Uplift, brought a court case seeking to revoke the licences for Rosebank, and also for Jackdaw, Shell’s North Sea gas field.
The court ruled that the existing licences were legally flawed. However, judges said development could continue while Ithaca and Equinor, its majority partner in Rosebank, applied for new ones.
Even still, the ruling raised fears that the projects could be permanently abandoned, given the Government’s apparent hostility to oil and gas. Ed Miliband, the Energy Secretary, labelled Rosebank a “colossal waste of taxpayer money and climate vandalism” while in opposition.
Ithaca’s pledge to press ahead with development follows a change in tone from the Government. Rachel Reeves, the Chancellor, this week said oil and gas developments in the North Sea that were given licences should go ahead despite the court ruling.
“We said in our manifesto that they would go ahead, that we would honour existing licences, and we’re committed to doing that, and go ahead they will,” Ms Reeves told The Sun.
It is the latest sign of a split between the Chancellor and Mr Miliband over attitudes to the climate. Ms Reeves has previously said net zero should not be used as an excuse to block investment.
Ithaca said it welcomed last year’s court ruling and would continue to “progress the Rosebank project ... in full compliance with the Government’s new environmental guidance, which is targeted to be published in spring 2025”.
Yaniv Friedman, Ithaca’s chairman, said the company also planned to progress with the equally controversial Cambo project.
Cambo is the second largest undeveloped oil and gas discovery in the UK North Sea following Rosebank. Shell was originally leading plans to develop it but pulled out after a backlash from green groups alongside the then government’s introduction of a windfall tax on UK oil and gas profits.