The UK government approved production from the Jackdaw gas field in the North Sea, with Energy Secretary Miatta Fahnbulleh saying first gas could be produced by the end of this month. The field, operated by Adura, a joint venture between Shell and Norwegian state energy firm Equinor, sits 150 miles east of Aberdeen.
Adura says Jackdaw will provide about 6% of UK gas production, enough to power 1.4 million homes. After imports are included, that amounts to about 2% of total UK demand. The government said the project would support UK gas supply, protect hundreds of jobs and add £2.9bn to the economy over its expected 11-year lifespan.
Fahnbulleh told BBC Radio Scotland Breakfast the gas would not lower energy bills this winter. She said the decision would "help minimise the UK's use of imported higher emission fuels as we continue our transition to renewables and nuclear" and that it remains "compatible with our legally binding climate commitments."
The government also announced an energy wealth fund with an initial £2bn in funding, using tax revenue from oil and gas extraction to invest in renewable and low carbon energy projects.
At Prime Minister's Questions, Conservative leader Kemi Badenoch thanked Andy Burnham for approving Jackdaw but accused the government of "dithering" over the decision and urged Labour to repeal its ban on all new oil and gas licences. Burnham said the previous Conservative government had "messed up" the original decision and that "these things have to be considered in the round."
Environmental campaigners opposed the approval. Ross Greer, co-leader of the Scottish Greens, described it as "climate vandalism." Greenpeace co-executive director Areeba Hamid said approving Jackdaw was "the wrong decision" in terms of lowering energy bills, providing energy security and addressing climate change. Oxfam said the government had "drilled straight through the UK's climate commitments."
In January 2025, the Court of Session in Edinburgh ruled that consent for Jackdaw had been granted unlawfully, with the judge saying developers should have provided more detailed account of the field's climate impact. The government's approval follows that court ruling.
Scotland's First Minister John Swinney said he hoped the announcement would provide certainty for the north east of Scotland but called for economic benefits to reach Scotland rather than the Treasury.
A decision is yet to be taken on Rosebank, the UK's largest known untapped oil field, located off Shetland.
