Politics
• Analysis
Cabinet split emerges over Rosebank oilfield decision as chancellor backs project
A cabinet split has emerged over the Rosebank oilfield decision, with chancellor John Healey favouring approval while energy secretary Miatta Fahnbulleh, who holds final say, is reported to be leaning towards rejecting the North Sea project.
By Haut Monde Post
• October 26, 2026
• 3 Min Read
Healey backs the licence
The Rosebank oilfield decision has opened a divide at the top of government, with chancellor John Healey in favour of the controversial North Sea project. The licence is currently on hold over concerns about the project's environmental impact.
His position became visible last week, when he told ITV he anticipated that revenues from oil and gas would flow into a new energy wealth fund.
Fahnbulleh's case for rejecting Rosebank
Energy secretary Miatta Fahnbulleh is ultimately in charge of the decision. The Guardian reported last week that, having approved the smaller Jackdaw gasfield, she now tilts towards turning Rosebank down. She told the Guardian the reasoning that justified Jackdaw does not transfer to Rosebank: the UK will still need gas on the road to net zero, and taking it from the North Sea beats importing it.
She drew the distinction in her own words:
"One is a gasfield that caters for the domestic market, while the other is an oilfield that is mainly for export."
Officials say Rosebank's emissions would run roughly seven times Jackdaw's, and Fahnbulleh is understood to see little energy security gain for the UK, since most of its oil would leave the country. She has also said the decision must be consistent with the UK's climate obligations, carbon budgets and the end destination of the energy transition. Officials say she has not yet made her decision.
Where the decision now sits
Downing Street kept silent on the question on Sunday. The Mail on Sunday reported that Andy Burnham and Healey had agreed to try to push the project through, but No 10 would not be drawn, describing the Rosebank oilfield decision as a matter for the energy secretary. Should the disagreement deepen, resolving it is expected to fall to the prime minister.
A spokesperson for the Department for Energy Security and Net Zero said: "We do not comment on speculation. The North Sea remains a vital national asset."
Party and industry stakes
Turning Rosebank down would land hard on the North Sea energy industry while handing climate campaigners a significant win. Labour MPs said on Wednesday there would be a big pushback in the party if Rosebank was approved, though most accept the Jackdaw arguments. MPs have also discussed forcing or encouraging a parliamentary vote on Rosebank should it be approved, as a way of expressing dissent.
- •Fahnbulleh has promised future North Sea revenues will fund green energy projects through an energy wealth fund, given £2bn in the budget
- •She said the fund's money would go to renewables, nuclear and other clean energy schemes
A final decision on the Rosebank oilfield is expected before the end of the year.
