Burnham’s £10.8bn North Sea gamble threatens to split Labour

Andy Burnham is expected to delay a decision on two major North Sea oil and gas projects as ministers weigh the political risks of approving new fossil fuel extraction after a summer of heatwaves and wildfires.

Consultations on the Rosebank oilfield and Jackdaw gasfield have closed, with a decision expected next month under Energy Secretary Miatta Fahnbulleh’s quasi-judicial process. Whitehall officials have warned privately about the “optics” of granting new drilling licences while Britain and much of Europe have experienced extreme temperatures and widespread fires.

The projects have become an early test of Burnham’s energy strategy. The Prime Minister has suggested that faster development of domestic oil and gas could help finance the transition towards cleaner energy, while Labour MPs are pressing him to prioritise renewable generation instead.

Whitehall sources expect Jackdaw to receive approval but believe Rosebank faces a tougher political battle, particularly given opposition from Labour backbenchers.

The developer, Adura, estimates the two projects would generate £10.8bn of investment, with more than three-quarters spent in Britain. They could support about 3,500 jobs during construction and 880 positions over their production lifetimes.

Rosebank is forecast to produce about 69,000 barrels of oil a day at peak output, equivalent to roughly 10 per cent of expected UK Continental Shelf production. Adura estimates the two fields could together account for about 10 per cent of domestic gas production.

The figures have done little to quiet environmental opposition. Critics argue that approving Rosebank would undermine Labour’s climate commitments while doing little to reduce household energy bills.

More than 200 musicians and artists, including Brian Eno, have urged Burnham to reject the project, arguing that Britain’s increasingly volatile climate makes further fossil fuel development politically and environmentally untenable.

The Government insists the final decisions will rest with the energy secretary, who will consider environmental assessments and consultation responses.

For Burnham, however, the projects have become an awkward test of whether Labour can reconcile energy security and industrial investment with its climate agenda — without allowing either side of the argument to define his premiership.