Ithican Energy shares surged on Wednesday after the UK government gave the green light for the development of the Rosebank oil field off the Shetland Islands.
Ithaca Energy has a 20% stake in Rosebank, the largest undeveloped oil field in the UK.
Ithaca Energy and Equinor have announced a £3.8 billion investment in the first phase of the Rosebank oil field development northwest of Shetland. The North Sea Transition Authority granted approval on 27 September.
Rosebank holds an estimated 300 million barrels of recoverable oil, with 245 million targeted in Phase 1. The field will use subsea wells tied to a redeployed floating production, storage and offloading (FSPO) vessel. First oil is expected in 2026-2027.
At peak, the £8.1 billion project should create around 1,600 UK construction jobs and 450 long-term UK roles. Major contracts include a £500 million subsea deal for TechnipFMC, a £328 million Odfjell rig contract, and an Altera FPSO charter.
The field lies 130 kilometres northwest of Shetland with estimated recoverable resources of 300 million barrels. Phase 1 targets 245 million barrels.
The FPSO will enable first production in 2026-2027. Rosebank should produce over 21 million standard cubic feet of natural gas daily, comparable to Aberdeen’s usage.
The development is forecast to spur £8.1 billion in investment, 78% within the UK. Around 1,600 construction roles and 450 longer-term UK jobs are expected.
Gilad Myerson, Executive Chairman, Ithaca Energy, commented:
“We are delighted to announce the decision to move forward with the Rosebank development alongside Equinor. Rosebank stands as the largest undeveloped field in the UK, and with the receipt of development consent from the NSTA, we are now poised to embark on a journey that will not only provide critically important domestic energy but also ignite substantial economic impact. The Rosebank project will create thousands of jobs and contribute significantly to securing the UK’s energy needs for many years to come.”
Ithaca Energy shares were 8% higher at the time of writing.