A spokesman for Offshore Energies UK, the industry trade body, said: “Continued investment in UK energy opportunities, including oil projects, is necessary to ensure UK security of energy supply, support hundreds of thousands of jobs and contribute to the UK economy.”
However, it is thought that almost all that oil is likely to be exported, partly because the Kraken field is not linked to a pipeline meaning its oil is likely to be collected by ship and taken to whichever refineries buy it.
It means the main benefit for the UK will come from any taxes paid by EnQuest. The windfall taxes imposed by Jeremy Hunt, the Chancellor, currently stand at 75pc of profits.
Craig Baxter, of EnQuest, said: “EnQuest continues to explore ways to progress the respective development of the Bressay and Bentley fields.
“EnQuest is committed to supporting the energy transition in the UK and any future field development will be conducted in line with EnQuest’s commitment to reaching net zero scope 1 and 2 emissions by 2040.”
Mr Baxter added that the gas initially extracted from the Bressay field would be used to power the Kraken operations, replacing the diesel fuels currently used and so cutting emissions.
He said: “This would significantly reduce Kraken’s emissions, by displacing diesel that is currently being used to power field operations.”
A Department for Energy Security and Net Zero spokesman said: “As data from the independent Climate Change Committee shows, we’ll still need oil and gas for decades to come, even when we reach net zero in 2050.
“That’s why we’re backing the UK’s oil and gas industry with annual licensing rounds, supporting around 200,000 jobs, generating billions in tax revenues to fund public services and support with the cost of living and retaining the skills and expertise needed for the green transition.
“Even with new oil and gas licences, we have been clear there will be a managed decline in UK production, projected at 7pc per year, and they will not make us a net exporter or increase carbon emissions above our legally binding carbon budgets.”
Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
