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Britain gives go-ahead for Equinor to develop Rosebank oilfield; oil prices climb amid tight supplies
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Britain gives go-ahead for Equinor to develop Rosebank oilfield; oil prices climb amid tight supplies
Regulator’s decision to give Equinor go-ahead to develop largest oilfield in UK waters sparks outrage from environmental campaigners; energy secretary says ‘we must be pragmatic’
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Today's agenda
Rosebank, the largest untapped oilfield in UK waters, has been approved by the UK government, sparking outrage from environmental campaigners.

Britain has given the go-ahead for the Oslo-listed energy company Equinor to develop the oil and gas field in the North Sea, north-west of Shetland.

Equinor holds a majority stake in Rosebank and will develop it with its British partner Ithaca Energy. The field is expected to produce at least 300m barrels of oil and is three times bigger than the controversial Cambo field that was put on hold more than a year ago.

A spokesman for the North Sea Transition Authority said: "We have today approved the Rosebank Field Development Plan (FDP) which allows the owners to proceed with their project.

"The FDP is awarded in accordance with our published guidance and taking net zero considerations into account throughout the project’s lifecycle."

Rosebank is one of the most controversial energy projects, with hundreds of climate scientists and academics and more than 200 organisations from the Women’s Institute to Oxfam joining tens of thousands of people across the UK in opposition. Environmentalists argue that it contravenes Britain’s plan for a net zero economy.

Equinor is expected to get a tax break of $3.75bn to develop the oilfield. Simon Francis, the coordinator of the End Fuel Poverty Coalition, said: "Hidden in the small print of the deal is that this project can only go ahead thanks to a massive tax break the government is giving to international oil and gas giant Equinor.

"Households struggling with their energy bills will be shocked that the new energy secretary has chosen to hand a multibillion-pound tax break to this Norwegian firm, rather than help people in the UK suffering in fuel poverty.

"This sum alone could have provided much-needed additional support to help disabled households, those living off the gas grid and the elderly.

"The government’s major drive to keep the country hooked on fossil fuels will be for little reward. 

"Figures show that more North Sea production will only give us an extra year of domestic gas, which will be charged to struggling households at global market prices.

"This is a political choice and households will remember this decision at the general election."

The news came as oil prices climbed by $1 a barrel, with markets worrying about tight supplies heading into the winter and higher interest rates.

The oil producers’ cartel, Opec, led by Saudi Arabia, and allies such as Russia, has cut production and forecast supply shortfalls.

"Brent crude rose more than 1% to $94.98 a barrel, while US light crude is up 1.1% at $91.4 a barrel."

The agenda
• 1.30pm US durable goods orders for August
• 3.30pm US EIA crude oil inventory data

We’ll be tracking all the main events throughout the day ...
Nils Pratley on finance
Nats should be embarrassed over cancellation of 164 flights at Gatwick
Nats should be embarrassed over cancellation of 164 flights at Gatwick
 

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