Mark Williamson

Ithaca Energy reported about $1bn in operating cash generation and $1.1bn in first-half preferred earnings, while signaling continued interest in acquisitions in the UK Continental Shelf and internationally. The Aberdeen-based producer is reportedly among the leading bidders for BP’s North Sea portfolio, alongside Adura and NEO NEXT+. Ithaca expects regulatory approval for the Rosebank field by the end of 2026, potentially enabling first production in the first half of 2027, despite environmental opposition and an earlier court ruling that invalidated the original approval process. The company also continues to develop plans for Cambo and has raised its expected annual dividend payout to as much as $530m.

The future of the Rosebank oil field and Jackdaw gas field is approaching a decision point as consultations conclude and Prime Minister Andy Burnham considers approval. Environmental campaigners, led by Uplift, argue that the projects would worsen climate change, fail to reduce household energy bills and do little for energy security. Adura, the Shell- and Equinor-owned developer, says the fields could provide around 10% of UK natural gas production, attract £10.8 billion in investment, generate £28.7 billion for the UK economy and sustain thousands of jobs. The projects remain politically contentious after Scotland’s Court of Session found the original Rosebank approval unlawful because it omitted emissions from burning the extracted reserves.

BP is auctioning its interests in more than 20 UK North Sea fields for an estimated £2 billion, putting about 1,100 Aberdeen-based jobs at risk and prompting renewed criticism of the UK windfall tax. Chief executive Meg O'Neill says the assets no longer compete for capital with higher-return opportunities elsewhere, although strong buyer interest suggests the portfolio remains attractive. Harbour Energy's profitable acquisitions and investment in the region further complicate claims that taxation alone is driving companies away. The sale reflects BP's effort to reduce debt and improve shareholder returns, while industry leaders, campaigners and politicians dispute whether the North Sea should receive more support or deliver greater public benefit, including through possible government ownership.

Great British Energy chief executive Dan McGrail says the state-backed organisation is moving from setup to delivery through investments in offshore wind, local renewable projects and clean-energy supply chains. Its first major investment, up to £50 million in Scotland’s Pentland floating offshore wind farm alongside Copenhagen Infrastructure Partners and public-sector investors, is intended to help establish Scotland as a global leader in floating wind. GB Energy has also supported Scottish community-energy schemes and an investment in Sheffield-based ITM that is expected to create 400 jobs. McGrail says the organisation will employ about 300 people, mostly in Aberdeen, while supporting thousands more through its investments. The organisation faces continued scrutiny over its achievements, the government’s changing energy priorities and Scotland’s opposition to new nuclear power, but McGrail maintains that its £8.3 billion capitalisation and clean-energy mandate remain in place through 2030.

The column argues that proposed restrictions on new North Sea exploration could endanger Aberdeen and wider UK energy-sector jobs, weaken energy security and increase dependence on imported oil and gas. It urges Prime Minister Andy Burnham to approve the Rosebank and Jackdaw developments, potentially reduce the windfall tax and ease renewable-support costs on household bills, while noting the political tension between Labour’s industrial and environmental constituencies. The piece contrasts the UK’s approach with Norway’s continued exploitation of oil and gas alongside renewable investment, and criticizes both Labour and the SNP for failing to provide a credible transition away from fossil fuels.