U.K. Green Lights Rosebank Oil Field Development

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--U.K. regulators have greenlit the development of the controversial Rosebank oil and gas project located in the U.K. Continental Shelf (UKCS), with a total investment value in excess of £8 billion (US$9.8 billion).

Located around 80 miles from the Shetland Islands, the Rosebank field is the country's largest untapped oil field and is estimated to contain up to 300 million barrels of oil. The field sits at a water depth of 1,100 meters, and Phase I of the project will target an estimated 245 million barrels of oil. At its peak the field will be capable of producing 69,000 barrels of oil and 44 million cubic feet of gas per day. Equinor and partners plan to invest US$3.8 billion in the first phase. Industrial Info is tracking four projects associated with Rosebank. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the report.

The decision by the North Sea Transition Authority (NTSA) was welcomed by the Conservative-led government and leading developer, Norway's Equinor (NYSE:EQNR) (Stavanger, Norway), but was condemned by climate groups and rival political parties, which argued that it will result in 200 million tonnes of CO2 emissions.

Chancellor of the Exchequer Jeremy Hunt said: "We are accelerating renewables and nuclear power, but will still need oil and gas for decades to come -- so let's get more of what we need from within British waters. Rosebank has been a huge untapped resource and now this investment will bring in billions of pounds into our economy to help secure our future energy supply. Following [Russian President] Putin's illegal invasion of Ukraine, the U.K. government took swift action - ending all imports of Russian fossil fuels. The British Energy Security Strategy [outlines] a plan to supercharge domestic renewable energy and nuclear capacity, as well as supporting our North Sea oil and gas industry as we transition to lower carbon energy."

The plan will be to drill four production wells and three water injection wells in Phase I of the development, which will be followed up with up to three further production wells and two water injectors in Phase II. The subsea wells will be tied back to a redeployed floating production storage and offloading vessel (FPSO), which Equinor claimed will avoid 250,000 tonnes of CO2 emissions. Startup is planned in 2026-27. Oil will be transported to refineries by shuttle tankers, while gas will be exported through the West of Shetland Pipeline system to mainland Scotland.

Arne Gürtner, senior vice president Upstream at Equinor in the U.K. commented: "We know that the world needs to transition to new, cleaner energy systems and our broad energy investments into the U.K. support this. And while we do this there is going to be a continued need for oil and gas, which currently meets 76% of the U.K.'s energy needs. Our decision to progress the Rosebank development is the result of work and collaboration by our employees, partners, government, regulators, and other stakeholders to ensure that this development is able to help meet this ongoing need, with the lowest carbon footprint possible."

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).