U.K. To Clear Controversial Jackdaw Oil & Gas Project

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

The U.K.'s Labour government looks set to green light the controversial Jackdaw oil and gas project in the North Sea, despite the project having had its previous permit withdrawn.

New Permission

The Labour-led U.K. government is expected to grant permission for the controversial Jackdaw oil and gas project in the North Sea as it seeks a way to slow the decline of its domestic production industry.  

The decision, which is due to be confirmed in the coming weeks, will reverse a Scottish court order in 2025 that saw the project have its previous permit withdrawn. The project has been at the center of a long-running battle by environmental groups to stop drilling in the North Sea. Jackdaw, located approximately 275 kilometers (km) east of Aberdeen in the central North Sea, has reserves of between 120 million and 250 million barrels of oil equivalent (Boe). At its peak, Jackdaw is expected to produce 6.5% of the U.K's total gas needs, enough to heat 1.4 million homes. According to Industrial Info Resources data, there are four Jackdaw projects worth almost US$500 million in investment. 

New Prime Minister to Decide

The decision falls to the new U.K. Prime Minister Andy Burnham. While his Labour Party supports a policy of not licensing any new drilling, both projects were already pre-existing and had received permits in the past. Burnham has also publicly recognised the role that the North Sea plays in the energy mix and has told the BBC: "We won't be able to stop using oil and gas for some time. That's just a fact. The question is whether we can accelerate use of it so that we pay for the transition." Sources in the government have said that the decision will be announced soon. 

Second Chances

The Jackdaw gas/condensate project and its larger sister project Rosebank are two of the U.K.'s largest proposed oil and gas projects in the North Sea, but permits granted by the previous Conservative-led government were ruled unlawful in court in early 2025 on environmental grounds, setting the projects back years. For additional information, see February 17, 2025, article - Permit Blocked for U.K.'s Largest Oil & Gas Project. Both projects are being developed by Adura, a joint venture established last December by Norwegian company Equinor and London-based Shell. A 20% share in Rosebank is owned by Aberdeen-based firm Ithaca. At present, work on Jackdaw has been allowed to continue as Shell fights in the courts for new consent. According to Adura, infrastructure work is well advanced. The Jackdaw wellhead platform has four wells, tied back to the Shearwater hub via a 31-km pipeline. The steel jacket and topside were installed in August 2023 and October 2025, respectively. The pipeline was laid in July 2024. Drilling activities were completed early 2026. 

Who is Adura?

Adura was formed at the end of 2025 when Shell and Equinor agreed to merge their U.K. offshore oil and gas assets into a 50-50 owned joint venture. The venture includes Equinor's equity interests in Mariner, Rosebank and Buzzard, and Shell's equity interests in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion. A range of exploration licenses was also part of the transaction. In the short term, Equinor's modest production of 38,000 barrels of oil equivalent per day (boe/d) has been bolstered by Shell U.K.'s 100,000 boe/d. In the longer term, Shell will benefit by getting shared ownership in the major Rosebank field, which has the potential to produce 70,000 boe/d and continue producing out to 2050. Rosebank is the country's largest untapped oil field and is estimated to contain up to 300 million boe. Industrial Info Resources is tracking four projects associated with Rosebank worth almost US$2.5 billion in investment. 

Decline in North Sea Development

Oil and gas investment in the U.K. North Sea is expected to drop sharply in 2026 to below US$3.5 billion, its lowest real-term level since the 1970s, according to research from Wood Mackenzie. It said that upstream capital expenditure (capex) will hit new lows, estimating that 2026 may be the last year that U.K. production exceeds 1 million boe/d. "The North Sea faces a period of stark divergence between Norway's sustained momentum and the U.K.'s deepest downturn in decades," said Gail Anderson, research director for North Sea Upstream at Wood Mackenzie. "Norway's focus on accelerating project timelines and maintaining gas supply will be critical for European energy security. Meanwhile, the U.K.'s newly consolidated landscape creates potential for recovery, but only if regulatory clarity fully returns to unlock deferred investment." For additional information, see February 2, 2026, article - Big Slump Expected in North Sea Oil & Gas Investment.

Key Takeaways

• The U.K. government is set to grant permission for the controversial Jackdaw oil and gas project in the North Sea
• Jackdaw is expected to produce 6.5% of the U.K's total gas needs
• Industrial Info Resources is tracking four Jackdaw projects worth almost US$500 million in investment. 

About Industrial Info Resources

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, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).