Aberdeen-based Adura, the company operating the undeveloped Rosebank and Jackdaw oil and gas fields in the North Sea, has announced a voluntary redundancy scheme for its 1,200 staff. The move signals potential job losses and intensifies pressure on UK ministers to grant urgent approval for the projects, which have faced delays due to legal challenges by environmental groups and a requirement for a fresh assessment of their carbon footprint.
The Rosebank and Jackdaw fields, described as the largest undeveloped oil and gas fields in the North Sea, were initially approved by the previous Conservative government. However, environmental campaigners have initiated legal challenges, halting progress and necessitating a re-evaluation of the projects' environmental impact. A final consultation period for these assessments is set to conclude next month.
The political landscape surrounding new oil and gas projects remains complex. The Scottish National Party's (SNP) official stance is a 'presumption against' new fields, and the Labour party has pledged to ban the licensing of new projects. Despite these positions, Energy Secretary Miatta Fahnbulleh retains the authority to approve Rosebank and Jackdaw, though their future remains uncertain.
Scottish Conservative MPs have voiced concerns over the situation. Douglas Lumsden, MP for Aberdeen South, stated that "Every redundancy linked to the uncertainty hanging over Rosebank and Jackdaw should shame both Labour and the SNP." He criticized what he termed a lack of decisive action from politicians, leading skilled workers to question their job security.
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Harriet Cross, MP for Gordon and Buchan, argued that Labour's broader regulatory and tax policies for the North Sea are unsustainable for businesses. "The Government must not think that if they permit Jackdaw and Rosebank that’s enough. It’s not," Cross said. She urged Labour to end its ban on new licenses and the Energy Profits Levy to encourage investment.
A spokesperson for Adura commented on the redundancy scheme, stating that the company is assessing its future structure to align with business needs and long-term ambitions. The spokesperson confirmed that some staff expressed interest in voluntary redundancy and that no final decisions on the company's organizational structure have been made. Adura plans to engage with staff as plans develop.
Nationalist MSP Dawn Black attributed job losses in the Scottish energy sector to the UK government's 'supertax' on energy. She contended that the focus should be on generating renewable energy jobs within Scotland, rather than supporting oil and gas jobs abroad while expertise is lost domestically.
The UK Department for Energy Security and Net Zero issued a statement emphasizing its focus on providing stability and supporting North Sea workers and communities, acknowledging their vital contribution to the UK economy.