Jersey Oil and Gas PLC (AIM:JOG, OTC:JYOGF) shares were impacted on Monday after its partner in the Buchan project in the North Sea said it was slowing investment in response to anticipated changes in the regulatory environment.
New environmental guidance has been introduced by the UK Government, necessitating a comprehensive review of Scope 3 emissions in Environmental Impact Assessments following the Finch ruling by the Supreme Court.
It means the timeline to first production at Buchan, previously slated for 2027, will be delayed.
NEO Energy is now awaiting further clarity on the regulatory and fiscal framework before proceeding, which will push back the development schedule.
"Whilst demand for hydrocarbons continues during the energy transition, homegrown energy is the right solution. A project like Buchan has the potential to produce some of the lowest emission barrels of any project globally,” chief executive Andrew Benitz said in a statement.
“Emissions arising from the combustion or use of those hydrocarbons will result in the same emissions as comparable barrels regardless of where they are produced.
Benitz added: “Homegrown energy should always trump imports, creating domestic economic growth, jobs and valuable UK tax receipts."
Jersey, meanwhile, is due to to announce its interim financial results for the six-month period ending 30 June 2024 on 5 September. It had £13 million in cash at the end of the first half of 2024.
Jersey noted that it has no financial exposure to the Buchan project costs due to previous farm-out agreements with NEO and Serica Energy.