Labour is poised to dial back its hardline stance on North Sea oil and gas drilling, aiming to stem a growing exodus of investment and jobs from the UK energy sector.
Rachel Reeves is expected to announce that “tieback” drilling — where new wells are connected to existing offshore infrastructure — will be permitted under current legislation. The change would allow operators to tap additional reserves within existing fields or even open new ones nearby, as long as they can be linked to current pipelines and platforms.
Tieback technology can extend the operational reach of offshore platforms by up to 100 miles, potentially unlocking significant new drilling opportunities without the need for entirely new installations.
Politically, the shift allows Energy Secretary Ed Miliband to maintain the appearance of a strict approach to new fossil fuel projects, while in practice offering a major concession to an industry that has warned of shrinking UK investment.
Full details are expected to follow shortly after the Budget speech, when the Department for Energy Security and Net Zero sets out the revised framework.
The announcement signals a more pragmatic tone from Labour, balancing its climate ambitions with economic and energy security concerns as pressure mounts from offshore operators.
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