UK bill would halt new North Sea oil and gas licences

The UK government has introduced legislation that would prevent the North Sea Transition Authority from issuing new oil and gas licences, putting Labour’s pledge to halt licensing for new fields into law if the bill passes.

The Energy Independence Bill would not decide the fate of Rosebank, a major oilfield off Shetland whose development was approved in 2022 but later faced legal challenges. The government has yet to decide whether extraction can proceed there. The bill would also allow additional production from existing fields and nearby areas through new Transitional Energy Certificates.

Ministers say this route could yield about 60 million barrels of oil and support hundreds of jobs. The bill also includes measures to scrap gas standing charges and speed up grid connections. The government has announced an initial £2bn for an energy wealth fund to invest tax revenue from oil and gas extraction in renewable and low-carbon projects.

The move comes two weeks after ministers approved production at the Jackdaw gas field. That decision followed a court ruling that earlier consent for Jackdaw and Rosebank had been unlawful and that fresh ministerial decisions were needed. The government says Jackdaw will help heat millions of homes; environmental campaigners have argued that it would do little for energy security and harm efforts to tackle climate change.

The government says the bill upholds Labour’s 2024 manifesto commitment and supports action on global warming. Prime Minister Andy Burnham said the changes would bring bills down and give households greater security.

The Conservatives called the bill “dangerous”. Shadow energy secretary Andrew Bowie accused ministers of ignoring economic and energy risks, while Aberdeen and Grampian Chamber of Commerce chief executive Russell Borthwick argued that the UK would need oil and gas for decades and should produce more at home.

Greenpeace UK called the bill a positive step for the clean-energy transition, but urged ministers to reject Rosebank. The industry body Offshore Energies UK also called for greater emphasis on energy security, saying the UK imports more than 40% of the energy it needs.