As Rosebank and Jackdaw face renewed scrutiny over environmental approvals and energy security, aspirants for the party’s top job press for clarity on the future of key North Sea developments.
The two contenders vying to lead Scottish Labour, Joe Fagan MSP and Michael Marra MSP, have called upon the UK Government to expedite decisions regarding the controversial Rosebank and Jackdaw North Sea oil and gas fields. The demand emerged during a recent leadership hustings in Stirling, where both candidates stressed the urgency of resolving the projects’ futures, citing concerns over jobs, investment, and the offshore supply chain.
This leadership contest follows the resignation of Anas Sarwar, who stepped down as Scottish Labour leader in July 2026 to take on a role as Minister of State for Trade in the Burnham ministry.
Michael Marra described the decision as “finely balanced,” yet argued that domestic oil and gas production in UK waters could be preferable to importing fossil fuels from overseas. Following the hustings, Mr Marra stated: “I want to see that decision as soon as possible, but I know that it’s a challenging decision for the UK Government.” He further emphasised that continued drilling would be “vital” for the north-east of Scotland and would support public finances. “We need to move faster to make sure we can secure proper investment in the North Sea,” Mr Marra added.
Joe Fagan echoed the call for a prompt resolution, warning that ongoing uncertainty could harm the offshore industry’s extensive supply chain. Mr Fagan acknowledged the multifaceted nature of the decision: “In fairness to the UK Government, this isn’t just a political decision, it’s a legal decision as well. They are bound by climate legislation.” He reiterated: “What’s important for me is that they make that decision as soon as possible.” Mr Fagan committed that, if elected leader, he would press the UK Government for a swifter resolution to secure what he views as the correct outcome for both the Scottish and wider UK economies.
Project Status and Regulatory Landscape
Both Rosebank and Jackdaw have become central to the broader discourse surrounding the UK’s energy transition, future energy security, and the economic trajectory of the North Sea sector. Rosebank, located approximately 80 miles north-west of the Shetland Islands, is considered the UK’s largest undeveloped oil and gas field, with estimated recoverable resources of over 300 million barrels of oil equivalent across its two phases. Operated by Adura (80%) and Ithaca Energy (20%), its Final Investment Decision (FID) was made in September 2023, with first production anticipated in 2026-2027. The project is projected to attract £8.5 billion in total direct investment, with £6.6 billion allocated to UK-based businesses, and sustain an average of 525 UK-based full-time jobs over its lifespan. The Floating Production Storage and Offloading (FPSO) vessel for Rosebank has already arrived and is undergoing hook-up and commissioning, though final approval from the UK government is still pending after a recent environmental review.
The Jackdaw gas field, situated in the Central North Sea some 250-275 km east of Aberdeen, is operated by Shell UK. It received FID approval in 2022, and production was expected to commence in 2025, potentially supplying around six per cent of the UK’s gas needs, enough to heat 1.4 million homes, and peaking in 2026 before continuing until 2050. The field’s steel jacket and topside were installed in August 2023 and October 2025 respectively.
However, the progress of both projects was significantly disrupted in January 2025 when a Scottish court ruled their previous approvals unlawful. This ruling, a victory for environmental groups such as Greenpeace UK and Uplift, determined that the environmental impact assessments for both fields failed to adequately consider “Scope 3” emissions – the greenhouse gas emissions resulting from the eventual burning of the extracted oil and gas. This judicial decision followed a UK Supreme Court judgment in June 2024 that mandated the inclusion of downstream emissions in planning approvals for fossil fuel projects. While preparatory work on the fields can continue, actual extraction requires fresh consent after the conclusion of the government’s consultation on Scope 3 emissions and a renewed consenting process.
Wider Economic and Environmental Context
The debate around new North Sea developments is set against the backdrop of the UK Government’s “North Sea Future Plan,” issued in November 2025. This plan commits to managing existing fields throughout their operational life but explicitly states that no new licences will be granted for new exploration fields. It does, however, allow for “Transitional Energy Certificates” in areas adjacent to existing fields, provided no new exploration is required. The government maintains that oil and gas will remain a crucial component of the UK’s energy system for decades during the transition to clean energy.
The oil and gas industry remains a significant economic contributor, generating approximately £25 billion in Gross Value Added (GVA) for the UK in 2023, with Scotland accounting for £14 billion of this. The sector supports an estimated 115,000–120,000 direct and indirect jobs across the UK, with 66,000 concentrated in Scotland, primarily in the north-east. Offshore Energies UK (OEUK) has advocated for policies that would incentivise domestic production over increased reliance on imported oil and gas, arguing that reforms could unlock £50 billion in investment and support tens of thousands of jobs.
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Conversely, environmental organisations and a group of over 100 climate scientists and legal experts argue that the climate damage caused by developing new fields like Rosebank and Jackdaw would far outweigh any economic benefits. Analysis suggests the carbon pollution could lead to economic damages between £119 billion and £336 billion, compared to the projects’ estimated £28.7 billion value to the UK. Experts also contend that increased North Sea extraction will have little impact on UK energy security or consumer bills, as oil and gas are internationally traded commodities, and much of the UK’s oil production is exported. Calls have also been made for a “carbon storage obligation” on any new North Sea drilling projects to reconcile them with net-zero targets.
Scottish Labour’s Broader Energy Stance
While the leadership candidates express immediate concerns for North Sea jobs and investment, the broader Scottish Labour energy policy, in alignment with the UK Labour Party, aims to position Scotland as a “clean energy superpower.” This involves ambitious targets to double onshore wind, triple solar power, and quadruple offshore wind by 2030, alongside significant investment in carbon capture and storage, hydrogen, and marine energy. The party also supports lifting “ideological blocks” on new nuclear energy to secure investment, jobs, and zero-carbon energy. Despite these long-term aspirations, recent reports have highlighted criticism regarding the progress and effectiveness of the Labour government’s flagship GB Energy scheme, headquartered in Aberdeen, in delivering on its promises to cut bills and create jobs.
As the UK Government navigates its net-zero commitments, energy security imperatives, and the economic demands of the North Sea industry, the timing and outcome of decisions on projects like Rosebank and Jackdaw remain a critical point of contention for political leaders, industry stakeholders, and environmental advocates alike.
