By Fatma Younis
Furious Labour MPs are lobbying the prime minister and chancellor not to overrule Energy Secretary Miatta Fahnbulleh should she decide to block the Rosebank oilfield, warning that cabinet splits over the issue have placed her in an “intolerable position.”
Cabinet splits over Rosebank decision
Sources close to Fahnbulleh say she is minded to refuse environmental permission for the North Sea field. However, Chancellor John Healey has signaled support for the scheme, and allies believe Prime Minister Andy Burnham also wants it to proceed. The divisions have prompted backbenchers to urge whips and Downing Street to prevent other ministers from intervening in Fahnbulleh’s quasi‑judicial decision.
Backbenchers demand Fahnbulleh’s autonomy
Catherine Fookes, a Labour member of the energy select committee, said approving Rosebank would “blow a hole in our green credentials” and that a group of MPs has made clear the decision must remain Fahnbulleh’s alone. Another MP warned that forcing the project through would be “economically shortsighted as well as politically explosive.” Fahnbulleh’s aides have circulated a memo insisting she is the sole decision‑maker and that no other cabinet member sees the advice on the case.
Prime minister’s ‘pragmatic’ stance
Burnham has promised a “pragmatic” approach to North Sea drilling, recently approving the Jackdaw gas field as a “bridge to the future.” On Wednesday he told the Commons that using domestic reserves can support a clean energy transition, fueling speculation he backs Rosebank. Government insiders argue the larger field could be approved without breaching carbon targets because most of its oil would be exported.
Treasury forecasts and tax revenue disputes
The Treasury has already factored an estimated £500 million in tax revenues from Rosebank into forecasts from the Office for Budget Responsibility since 2019. Officials say this does not constrain Fahnbulleh’s decision. Critics, including Labour MP Clive Lewis, argue that pencilling in receipts amounts to “macho bullshit” and that projected revenues are based on operator estimates, not guaranteed Treasury income. Analysis by campaign group Uplift suggests tax breaks and decommissioning costs could outweigh any net gain.
Climate campaigners warn of long‑term costs
Greenpeace UK co‑executive director Areeba Hamid said any revenues would leave public services hostage to future oil prices and taxpayers liable for decommissioning costs for decades. She added that approving new drilling would add to climate impact costs not fully captured in official forecasts.
Parliamentary rebellion looms
MPs say Rosebank could trigger a significant rebellion, unlike the Jackdaw approval where they accepted the argument for domestic gas supply. Fookes noted that the case for Jackdaw was made to some degree, but Rosebank is “a different issue.”
