Ithaca Energy shares jump after approval of Rosebank oil field
- Shares in Ithaca Energy, north sea oil producer jump by more than 8% on Rosebank oil field approval
- The UK’s largest untapped oil field, 80 miles west of Shetland, is estimated to contain at least 500 million barrels of oil
- Regulators said the approval had been given the go-ahead with climate concerns in mind – with net zero considerations taken into account
Susannah Streeter, head of money and markets, Hargreaves Lansdown:
‘’The waiting game is over and with approval now granted by the UK government for the exploitation of Rosebank, Ithaca Energy investors have cheered at the news, with shares rising by more than 8% in early trade. The company and its giant Norwegian partner Equinor have announced they have taken the final investment decision to progress phase 1 of the development on the UK continental shelf, 80 miles west of Shetland. Ithaca Energy has been on a rollercoaster ride since its launch onto the London market, weighed down partly by the windfall tax. It said the energy profits levy forced it to write down its assets by £58 million. So, the approval marks a ray of light for the company, and it is ploughing on with its plans.
The decision will undoubtably allay some energy security concerns, given that the partnership estimates that 245 million barrels of oil could be produced in phase 1 on the project, but it pushes the UK down a notch in terms of its net zero leadership. Even though the regulator has said that these considerations have been taken into account, and the companies have stressed that electrification of operations will reduce emissions, it muddies the playing field again when it comes to government support for the green transition. The decision, coming so swiftly after the Sunak administration pushed back the ban on sales of new petrol and diesel cars to 2035, leads to more uncertainty for companies and investors focused on cleaner energy solutions.”
