A Scottish court has revoked permission to exploit the UK’s largest untapped oil reserve, Rosebank, and the smaller Jackdaw project.
Having been granted under the previous government, a Court of Session hearing saw Equinor and Ithaca Energy’s licenses to exploit the Rosebank field overturned.
Shell was also told production at its Jackdaw field would not be allowed unless a new licence was granted.
“The public interest in authorities acting lawfully and the private interest of members of the public in climate change outweigh the private interest of the developers,” Lord Ericht ruled.
Some £3 billion has already been spent on the projects overall, with the trio allowed to continue development but barred from extracting oil and gas while the North Sea Transition Authority makes a decision on future licenses.
Downstream emissions from the oil and gas would have to be considered this time around, after permission was originally granted for Jackdaw in 2023 and Rosebank the year prior.
"Swift action is needed from the government so that we and other North Sea operators can make decisions about vital UK energy infrastructure," a Shell spokesperson responded.
"We welcome today's ruling and are pleased with the outcome which allows us to continue with progressing the Rosebank project while we await new consents," Equinor added.