The Labour authorities is grappling with a authorized dilemma over its plan to impose a right away ban on new North Sea oil and gasoline exploration earlier than the trade’s newest licensing spherical closes.
The get together swept to energy final week with the pledge to finish new North Sea exploration licences however its plans have been forged into doubt by the timing of an ongoing licensing spherical.
The brand new authorities might want to determine whether or not or to not cancel the method, which might find yourself granting a small variety of new North Sea licences in breach of its pledge to finish new oil and gasoline exploration.
However cancelling the mechanism, which is run by the trade regulator, the North Sea Transition Authority (NSTA), might go away the brand new authorities weak to a volley of authorized actions from the businesses, which can have spent thousands and thousands getting ready their bids.
The federal government is anticipated to take authorized recommendation on the right way to implement its North Sea coverage, with out risking a authorized problem from oil and gasoline firms, earlier than taking a last determination on the dwell licensing spherical.
Tessa Khan, the manager director of Uplift, which campaigns in opposition to fossil fuels, mentioned it could be “stunning” if a newly elected authorities didn’t ship on a manifesto pledge to cease North Sea growth.
“Folks on this nation voted for change, no more of the identical rip-off power system the place oil and gasoline firms stroll off with huge income and we’re all left with increased payments, declining jobs and a worsening local weather disaster,” she mentioned. “Lastly, we have now a authorities that’s ready to maneuver the UK to a greater, fairer power system,.”
Ministers are additionally underneath stress from commerce unions to safeguard thousands and thousands of jobs that depend on the North Sea trade whereas they swap to greener sectors.
The Labour get together manifesto mentioned it could “guarantee a phased and accountable” transition away from drilling within the North Sea that may recognise “the proud historical past of our offshore trade and the brilliance of its workforce”.
Labour’s pledge to finish new North Sea drilling was central to its promise to show Britain right into a clear power superpower. The get together promised to rule out new oil and gasoline whereas doubling onshore wind, tripling solar energy and quadrupling the UK’s offshore wind energy capability.
A authorities spokesperson mentioned: “As beforehand acknowledged, we is not going to problem new licences to discover new fields. We can even not revoke current oil and gasoline licences and can handle current fields for the whole lot of their lifespan.”
The federal government was compelled to disclaim experiences that the power secretary, Ed Miliband, had defied his personal officers by ordering a right away ban on new licences, together with these nonetheless being thought of by the regulator.
The spokesperson mentioned the report, revealed within the Day by day Telegraph, was a “full fabrication” which “invents conferences and choices that haven’t taken place”.
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“We’re working with the North Sea Transition Authority to make sure a good and balanced transition within the North Sea,” the spokesperson added.
The newest licensing spherical, which launched within the autumn of 2023, concerned 76 oil and gasoline firms submitting 115 bids to hold out exploration work throughout 257 “blocks” of the North Sea, Irish Sea and east Atlantic.
Nonetheless, bids for a small variety of fields had been nonetheless awaiting a call from the NSTA when Rishi Sunak known as the snap election in Might.
In the identical month the NSTA mentioned: “Additional consideration is being given to a small variety of remaining purposes and some extra could also be provided at a later date.”
A spokesperson for the NSTA declined to touch upon the regulator’s earlier assertion. He mentioned: “We observe the coverage route set by the federal government of the day.”
