(WO) — The UK government is reportedly poised to approve the Jackdaw development in the North Sea, a move welcomed by Aberdeen energy leaders who are urging officials to follow with approval of Rosebank and broader reforms aimed at restoring offshore investment.
The Aberdeen & Grampian Chamber of Commerce (AGCC) said approval of Jackdaw would support North Sea jobs, domestic production and UK energy security, but cautioned that the project should represent the beginning of a broader shift in government policy.
“Approval of Jackdaw would be a hugely important vote of confidence in the North Sea, protecting jobs, strengthening our energy security and ensuring more of the oil and gas we still need is produced here in the UK,” said Russell Borthwick, chief executive of AGCC.
“But Jackdaw cannot be the end of the story,” Borthwick said, calling for similar action on Rosebank. The Chamber said the two projects together could account for 10% of the UK’s future natural gas supply while supporting thousands of jobs and billions of pounds in economic activity.
The Chamber also renewed its criticism of the UK’s oil and gas tax regime, arguing that high taxes are driving investment and employment away from the North Sea.
Borthwick called on the government to end the Energy Profits Levy at the start of the next tax year and transition to the permanent, price-based Oil and Gas Revenue Levy.
“Swift approval of both Jackdaw and Rosebank would put those words into action, but we also need the Government to address the punitive tax regime which is driving investment and jobs out of the North Sea,” he said.
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