Jersey Oil & Gas plc partner in the Buchan Horst project will “materially slow” activities while awaiting new government environmental guidance for oil and gas firms.
LICENCE
Operator NEO Energy and its owner HitecVision will wait for clarity “around the UK regulatory and fiscal framework so that the full impact can be assessed.”
“This will inevitably delay first oil timing in relation to the project, which was previously forecast to be late 2027,” added Neo.
“The joint venture will seek a licence extension in order to continue technical evaluation in light of these changes to tax and environmental consents”.
The Government plans a consultation following the Supreme Court ruling in June that the impact of hydrocarbon combustion – scope 3 emissions – must be included in the environmental impact assessment for new projects.
The consultation is expected to conclude by Spring 2025.
The Department for Energy Security and Net Zero describes scope 1 as direct emissions from owned or controlled sources; scope 2 covers indirect emissions from the generation of purchased energy; and scope 3 refers to all indirect emissions, not included in scope 2, that occur in the value chain of the reporting company.
NEO hold 50%, Serica Energy plc 30% and JOG 20% of licence P2498 containing the Buchan Horst oil field and J2 oil discovery in the UK central North Sea.