The UK has approved development of the Jackdaw gas-condensate field off northeast Scotland, clearing owner Adura to start production within weeks. The North Sea Transition Authority (NSTA) granted development and production consent on Oct. 21. That followed an environmental review led by the Offshore Petroleum Regulator for Environment and Decommissioning (OPRED) and Energy Secretary Miatta Fahnbulleh’s agreement to the consent. According to Wood Mackenzie, Jackdaw lies 225 km (140 mi) east of Aberdeen and holds about 68 MMboe. The government expects it to raise domestic gas production by about 6% at its peak.
The decision ends a process that began in January 2025, when a judicial review suspended Jackdaw’s original 2022 consent. The court found that emissions from burning the field’s gas (scope 3 emissions) had not been fully assessed, as the Supreme Court’s 2024 Finch ruling requires. The government said Jackdaw will not stop the UK from meeting its carbon budgets or its 2050 net-zero target. Because the field was already licensed, it said the approval also fits its pledge to issue no new exploration licenses.
“Following careful consideration of all relevant factors I have agreed that the regulator can grant consent for gas to be produced at Jackdaw, which will begin to supply the UK with gas from this winter thanks to the highly skilled and vital North Sea workers,” Fahnbulleh said.
Adura, a 50/50 joint venture between Shell UK and Equinor UK, said Jackdaw is a £2.1-billion investment. At peak production, it could supply enough gas to heat the equivalent of about 1.4 million UK homes. “This decision is an important and positive step forward for Adura and for the future of UK energy. It provides certainty to the businesses and skilled workers already delivering the project and demonstrates the value of pragmatic, evidence-led decision-making,” said Adura CEO Neil McCulloch.
Wood Mackenzie’s estimates for the field:
- Production: About 140 MMcfd on average in 2027, roughly 6% of UK Continental Shelf gas supply.
- Emissions: 24 MtCO₂e over a nine-year field life.
- Tax receipts: About £1.5 billion at current prices.
- Returns: Higher prices lift the project’s IRR from 9% to more than 14%.
The firm also estimated that replacing Jackdaw’s gas with U.S. LNG would raise net scope 1 and 2 emissions by 3.5 MtCO₂e. “Blocking Jackdaw would require the UK to import more emissions-intensive LNG to meet UK gas demand. We estimate that would have increased net emissions by 3.5 MtCO2e, not reduced them,” said Gail Anderson, Wood Mackenzie’s research director for North Sea upstream.
Attention now turns to Rosebank, which is next in the regulatory process. Adura, the Aberdeen & Grampian Chamber of Commerce, ETZ Ltd and INEOS all urged the government to approve it quickly. Adura said the two projects together represent £10.8 billion of investment and could supply about 10% of UK gas and oil output at peak. INEOS also renewed its call to change the Energy Profits Levy in the upcoming Budget.
The government also asked the NSTA to consider urgent tieback cases before legislation on new Transitional Energy Certificates is in place. In addition, it announced a £2-billion Energy Wealth Fund to reinvest North Sea tax revenues in low-carbon energy.
source: worldoil.com