Rosebank oilfield decision: controversial cabinet split emerges as approval could trigger Labour opposition

Cabinet views diverge

Healey is understood to favour granting a licence for the controversial North Sea development. The application remains on hold amid concerns over its environmental effects. Energy Secretary Fahnbulleh is responsible for the decision, and officials say she has not reached a conclusion. Views from Healey and Andy Burnham are also expected to carry weight.

Energy and emissions concerns

Rosebank would produce about seven times the emissions of Jackdaw, according to officials. Fahnbulleh is understood to question how much the oilfield would contribute to UK energy security because most of its output would be exported.

Fahnbulleh has said each application should be assessed separately. She said decisions must align with climate obligations, carbon budgets and the transition to a different energy system.

Party reaction and funding

Labour MPs have warned that approval for Rosebank would face major resistance within the party. Most, however, are prepared to accept the case that Jackdaw is needed as part of the shift to net zero.

Fahnbulleh has pledged to direct future North Sea revenues towards green energy through an energy wealth fund. She said last week that the fund would receive £2bn in the budget, but did not specify which tax revenues would contribute or how much they would raise.

Government declines comment

No 10 declined to comment on Sunday after a Mail on Sunday report said Burnham and Healey had agreed to try to advance the project. It said the decision was for the energy secretary.