The UK government has approved the development of the Jackdaw gas field in the North Sea, operated by Adura, a joint venture between UK-based Shell and Norway’s Equinor (UK government statement, 21/10/2026).
“Recent events in the Middle East have triggered global energy shocks and pushed up bills for families across the country. At a time of global instability, homegrown energy can be a source of national strength”, the government said, explaining the rationale behind its decision.
According to the government, the Jackdaw project is expected to boost domestic gas production by approximately 6% at its peak, helping sustain the UK’s gas supply over the field’s operational lifespan of up to 11 years.
The government also announced the creation of a new Energy Wealth Fund, which will channel tax revenues from North Sea oil and gas production into renewable and low-carbon energy projects to support the green transition. The fund will receive an initial GBP2bn (EUR2.4bn) injection, with future North Sea revenues expected to be allocated to it over time, according to the government’s statement.
The decision aligns with the government’s manifesto pledge to refrain from granting new licences for exploration in new fields while allowing existing fields to operate throughout their lifespan. The Jackdaw field already holds a licence, and the North Sea Transition Authority’s approval now clears the way for the developer to begin operations, the statement added.
The decision comes against the backdrop of a prolonged decline in UK gas production that has continued since the beginning of the century. Gas production has decreased by 8%/year on average since 2022, reaching 32 bcm in 2025. In 2022, it increased by 16% following an 18% decline in 2021. It was relatively stable between 2012 and 2020 at around 40 bcm/year. Previously, it decreased by 70% from a peak at 115 bcm in 2000 to 40 bcm in 2013. In 2022, Shell took a FID to develop the Jackdaw gas field, with reserves between 18 and 38 bcm (Enerdata Global Energy Research).
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