Ithaca warns it could halt UK investment if Rosebank's $3.8 billion phase is blocked
Key Facts
Yaniv Friedman, executive chairman of Ithaca Energy, warned that the company would likely halt further investment in Britain if the government did not approve development of the Rosebank oilfield. Reuters cited an interview with the Financial Times in which he linked continued investment to approval of the project. Friedman said the company "would likely halt further investment in Britain if the government did not approve the Rosebank oilfield". The announced joint investment in the field's first phase totals about $3.8 billion, according to Ithaca's statement at the time of the final investment decision. The company declined to comment on the report when contacted by Reuters.
Ithaca holds a 20% working interest in Rosebank, according to its field development statement. The project's official website identifies Adura as the operator, with an 80.0% ownership stake. The field lies about 130 kilometres northwest of Shetland, with estimated recoverable oil resources of about 300 million barrels across its two development phases. In separate estimates of the project's investment impact, Ithaca expects Rosebank to generate total direct investment of £8.5 billion. The company expects £6.6 billion of that projected investment to go to UK-based companies.
Fresh approvals are subject to an environmental review that includes emissions from burning oil and gas after extraction, according to British government guidance. The Department for Energy Security and Net Zero said environmental impact assessments for North Sea projects must take the effects of this combustion into account. These requirements cover emissions from the end use of production, which are central to the dispute over approvals. As part of the Rosebank review, the UK's Offshore Petroleum Regulator for Environment and Decommissioning issued a request for additional information on 27 March 2026. The government record shows that the developer's response to that request was received on 19 June 2026.
On project activity, capital expenditure on Rosebank totalled $120 million in the first half of 2026, according to Ithaca's financial results. That compares with spending of $130 million in the corresponding period of 2025. In its August update, the company cut its annual net spending guidance for the field to $250–280 million from a previous range of $280–320 million. It attributed the revision to the rescheduling of drilling work and associated costs following an equipment-handling incident at the rig contractor. It said the drilling rig returned to service in July and resumed well operations.
Alongside funding development, Ithaca raised its annual dividend guidance in August to $500–530 million from a previous range of $470–520 million, citing financial performance and cash flow. The company's inclusion in the FTSE 100 index took effect on 21 September 2026. Outside Britain, Ithaca agreed to buy a portfolio of offshore oil assets from Suncor off Canada's east coast. The agreed base cash payment at completion is US$860 million, according to the acquisition statement. The terms include potential additional consideration of up to US$250 million, linked to Brent crude prices.
The company is targeting completion of the Canadian deal in the first half of 2027, subject to closing conditions and Canadian regulatory and government approvals. In Britain, Rosebank's operator set a production start-up window in the first half of 2027, according to Ithaca's first-half results. The production start-up schedule is also subject to the necessary regulatory approval for the field. The company said the court ruling allows it to continue developing Rosebank while awaiting fresh approvals. But its annual financial statements confirm that extracting oil from the field remains prohibited without fresh approval.