Burnham to uphold North Sea licence pledge

Incoming prime minister Andy Burnham is reported to intend to uphold Labour’s 2024 manifesto pledge not to issue any new North Sea oil and gas exploration licences. At the same time, he is expected to honour existing licences, maintaining scope for activity in fields that already have permits.

Labour deputy leader Lucy Powell has said Burnham will stick to the party’s manifesto commitments but with a "change of emphasis" on North Sea oil and gas. This signals continuity on the core policy of halting new exploration, alongside a possible shift in how existing assets are managed and developed.

Two major projects, Rosebank and Jackdaw, are central to the near-term policy debate. Both fields already hold licences to explore for oil and gas, so potential production there would not involve issuing new exploration licences.

However, approvals for production at Rosebank and Jackdaw are subject to ongoing legal and regulatory processes. Regulators are reconsidering the projects and conducting public consultations, which means Burnham will not be in a position to explicitly approve them immediately on taking office.

As a result, the effective decisions on whether these projects proceed to production will fall to the incoming, yet-to-be-announced energy secretary. The approvals process will continue through the established regulatory channels rather than being determined on day one of the new government.

Reporting indicates that Burnham could back measures to speed up development of fields that already hold licences. One option under discussion is the greater use of so-called "tiebacks," which link new production to existing approved infrastructure.

Supporters of this approach argue that such steps would not technically breach the manifesto commitment against issuing new licences, because they rely on existing approvals and infrastructure. They would focus on maximising output from already-licensed areas rather than opening new ones.

However, both the prospect of accelerating existing plans and the use of tiebacks are expected to provoke opposition from some Labour MPs and climate campaigners. Critics are concerned about the climate implications of expanding production, even within the confines of existing licences.

The reported approach leaves the incoming government balancing several objectives: adherence to the manifesto ban on new exploration licences, legal and regulatory constraints on high-profile projects, and industry interest in progressing existing fields.

With decisions on key projects delegated to regulatory processes and the new energy secretary, early North Sea policy is likely to focus on how far and how fast already-licensed developments can proceed. This will shape the practical impact of maintaining the exploration ban while honouring existing licences.