The UK Government has approved plans to begin drilling in the Jackdaw gas field in the North Sea.
The decision ends months of speculation about the future of the project, which owner Adura said could deliver around 6% of UK North Sea gas production.
The drilling project is one of two – alongside the Rosebank oil field off Shetland – which were approved by the previous Conservative government.
Both were approved for drilling licences in June 2022, but this was overturned by the Scottish courts after a challenge from environmental campaigners.
This came after a UK Supreme Court ruling that developers had to account for the climate impact caused by burning fossil fuels in their planning applications.
Fresh public consultations on the proposals took place this year and closed in August, and the Government gave the green light to Jackdaw on Wednesday morning.
A decision on Rosebank, the largest untapped oil field in the North Sea, is being made separately, with Energy Secretary Miatta Fahnbulleh saying it will take “a bit longer”.
The decisions are seen as a key test for Prime Minister Andy Burnham.
Mr Burnham previously said he would “take a pragmatic approach when it comes to the North Sea” since coming to power in the summer.
He has faced pressure from environmental groups to “stick to the spirit of Labour’s manifesto commitment” and refuse consent for either of the schemes.
The 2024 manifesto committed to issuing no new oil and gas licences for the North Sea.
However, proponents of Jackdaw and Rosebank within the party have argued that neither are new fossil fuel fields, given the wheels were in motion to tap them ahead of Labour coming to power.
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