This development allows offshore operators to resume submitting applications for consent to extract O&G in already-licensed fields. Credit: Igor Hotinsky/Shutterstock.

The UK Government has introduced new guidance on environmental impact assessments (EIA) for proposed oil and gas (O&G) projects in the North Sea, aiming to provide clarity and stability for offshore developers.

This move comes in response to a Supreme Court ruling last year that highlighted the need for EIAs to consider the global effects of burning extracted fuels.

The guidance outlines how EIAs should be assessed, ensuring that the full effects of fossil fuel extraction are recognised in consenting decisions.

This development allows offshore developers to resume submitting applications for consent to extract O&G in already-licensed fields, which had been paused since the Finch Supreme Court judgment.

UK Energy Minister Michael Shanks said: “This new guidance offers clarity on the way forward for the North Sea oil and gas industry, following last year’s Supreme Court ruling.  

“It marks a step forward in ensuring the full implications of oil and gas extraction are considered for potential projects and that we ensure a managed, prosperous and orderly transition to the North Sea’s clean energy future, in line with the science.”

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When reviewing applications, the Energy Secretary will evaluate the environmental significance of a project, while also considering economic impacts and other relevant factors on a case-by-case basis.

This balanced approach aims to support the O&G sector while advancing the UK’s clean energy goals.

The publication of the new guidance is part of the government’s broader efforts to collaborate with the industry in transitioning towards a clean energy future for the North Sea.

It aligns with the government’s recent commitment of £9.4bn ($12.67bn) for carbon capture and storage projects in the North Sea.

Earlier this year, the North Sea Transition Authority (NSTA), which regulates O&G activities in the UK North Sea, revised its investment and production forecasts for the upcoming years, following 2024 figures that exceeded expectations.

While this year’s investments are anticipated to decline to £4.8bn, they still remain considerably higher than previous forecasts.