Jackdaw gas field is given green-light as ministers approve fresh drilling in the North Sea in bid to slash energy bills

The UK Government has approved plans to begin drilling in the Jackdaw gas field in the North Sea.

Prime Minister Andy Burnham said the approval of the Jackdaw gas field will 'protect hundreds of jobs and help keep millions of homes warm this winter' but insisted the Government remained 'committed to moving towards renewable energy'. 

In a move which is likely to anger environmental groups, the Prime Minister has reversed the Labour Party's previous manifesto commitment to not grant new licences to oil and gas production.  

Environmentalists have long opposed developments but the offshore industry has stressed the economic and energy security benefits of approving them. 

Supporters previously suggested it could create 3,500 jobs during construction and 880 over the course of its useful lifetime. 

North Sea gas is mainly used domestically, meaning it is more useful in helping to reduce the cost of bills for homeowners than oil, which is predominantly exported. 

Production was approved by the previous Conservative government in 2022 but was delayed after a legal challenge by Greenpeace, leaving Labour ministers to decide whether drilling should go ahead. 

The Prime Minister has faced pressure from climate activists and some of his own backbenchers to 'stick to the spirit of Labour's manifesto commitment' and refuse to green light the project.

But Mr Burnham has previously said he would 'take a pragmatic approach when it comes to the North Sea', indicating a possible change in the party's approach to drilling.

Jackdaw is a gas field situated 150 miles east of Aberdeen.

Adura, the joint venture between Shell and Norweigian state energy firm Equinor which is behind the project, previously said the move would strengthen energy security and support vital jobs. 

An updated environmental impact assessment earlier this year also said it will ‘not materially influence’ greenhouse gas emissions.

It is estimated that both the Jackdaw gas field and Rosebank oil field west of Shetland can contribute £28.7billion to the economy, generate £1.8billion in tax revenues by the end of this parliament, support 3,500 jobs at peak construction and sustain 880 jobs throughout production.