Equinor (NYSE:EQNR) and partner Ithaca Energy announced a final investment decision Wednesday to move forward with Phase 1 development of the Rosebank oil and gas field in the North Sea, following approval from the North Sea Transition Authority.
The partners said they plan to jointly invest $3.8B in the field, with Equinor (EQNR) owning 80% of the project.
Rosebank, the U.K.’s largest undeveloped field, is located ~80 miles northwest of the Shetland Islands, with total recoverable resources estimated at 300M barrels of oil; at its peak, the project should produce 69K bbl/day of oil and 44M cf/day of gas.
The field will be developed with subsea wells tied back to a redeployed FPSO, with drilling starting in 2025 and production beginning in 2026 or 2027.
The approval comes as the U.K. government seeks to loosen rules around environmental regulations, such as delaying a ban on sales of new gasoline and diesel cars to 2035.