ENERGY giant Equinor has underlined its confidence in controversial plans to develop the bumper Rosebank oil field West of Shetland as it downplayed a report that the project faced regulatory delays amid climate concerns.
The North Sea Transition Authority and the Offshore Petroleum Regulator for Environment and Decommissioning had been expected to approve the 300 million-barrel development before Westminster MPs break for the summer on July 20.
The regulators have delayed sanctioning the project until August at the earliest according to a report by City A.M. It suggested the hold up reflected regulators’ unease about Equinor’s proposed plans in the context of the official drive to have firms reduce emissions associated with the production process. This will include using electricity to power production facilities rather than standard gas-fired generators.
However, a spokesperson for Equinor told The Herald: “In our engagement with the regulator, we have not received any concerns related to electrification and we continue to mature the Rosebank project according to plan.”
The spokesperson added: “We definitely aim for everything to fall in place this year.”
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Environmental campaigners have expressed fierce opposition to Equinor’s plans to develop Rosebank. They say the use of the oil and gas produced from Rosebank will generate huge amounts of emissions.
Equinor has said Rosebank will bring much needed energy security and investment in the UK while supporting the UK’s net zero target by reducing reliance on more emissions-intensive imports. It plans to use a revamped production vessel on Rosebank which will be capable of running on renewable energy.
The company is working on plans to develop Rosebank with Ithaca Energy.
Israeli-owned Ithaca did not comment on the City A.M. report.
The company signalled its continued interest in potential North Sea developments yesterday when it announced it would acquire the 40 per cent of the Fotla oil discovery it did not already own from Spirit Energy for an undisclosed sum.
Ithaca said: “Development plans are currently being evaluated, with first production from the Fotla Discovery targeted in 2026.”
READ MORE: Warning North Sea investment may halve but oil firm boss confident on Cambo
Ithaca is leading work on plans to develop the giant Cambo field West of Shetland. Shell has put its stake in Cambo up for Sale.
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