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Speculation that Energy Secretary Ed Miliband will approve the controversial Jackdaw oil and gas field is “unfounded”, the minister’s department said.
The Times reported that Mr Miliband, the key proponent of Labour’s net zero plans, is set to give the project the green light.
Jackdaw was previously approved under the Conservatives, before being put on ice when a court appeal forced a new environmental assessment.
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Labour was elected on a manifesto that promised not to approve new oil and gas licences.
However, the government considers this not to apply to Jackdaw due to the prior consent, leaving the door open for Jackdaw to be approved.
Mr Miliband’s efforts to sprint towards green energy have faced new challenges following the outbreak of war in the Middle East, and rising energy prices.
Chancellor Rachel Reeves said earlier this week she was “very happy” to back Jackdaw, and the linked Rosebank project.
Both are located in the North Sea, with Jackdaw – off Aberdeen – mainly containing gas, and Rosebank – near the Shetland Islands – having both gas and oil.
In Labour’s 2024 manifesto, Sir Keir Starmer promise his government would “not issue new licences to explore new fields”.
A government source pointed Sky News to the fact nothing was said about previously granted consents in the policy platform.
Another said it was noted that Mr Miliband’s decision will be made in a quasi-judicial fashion, based on the law, rather than government or Labour Party policy.
In opposition, Mr Miliband branded Rosebank a “colossal waste of taxpayer money and climate vandalism”.
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