INEOS Energy urges UK approval of Jackdaw and Rosebank North Sea fields

INEOS Energy chairman Brian Gilvary argues that the UK government's pending decision on the Jackdaw and Rosebank fields will signal whether Britain can attract energy investment, with almost £11bn of private investment waiting. He says the North Sea's decline is accelerating, with decommissioning spending forecast to overtake capital investment from 2029. Current estimates suggest decommissioning tax relief and lost revenues could approach £13bn by 2035. He calls for a more stable fiscal regime, removal of drilling restrictions and reform of the Energy Profits Levy.

Key facts

Market context

Crude oil and natural gas from the North Sea are the raw materials behind a large share of European fuels, power generation and petrochemical feedstock. Natural gas is used both as an energy source and as the starting point for ammonia, methanol and many nitrogen-based fertilizers, so gas availability and price matter to chemical producers as well as utilities. Demand is driven by heating, power, transport fuels and industrial users that rely on steady gas and naphtha supply. When domestic output falls, the UK typically draws more heavily on imported liquefied natural gas and pipeline gas, which can bring higher freight costs, more exposure to international price swings and greater dependence on foreign suppliers. Field approvals and fiscal terms also shape how long producers keep older assets running and how much capital is directed to new projects versus decommissioning, which affects future supply timing for buyers planning contracts.

Source: official release on ineos.com. Summary and context written by Market Krystal.