The UK government is facing a critical decision regarding the future of Rosebank, the country’s largest untapped oil field located off the coast of Shetland. Concerns have been raised that moving forward with the project could conflict with recently imposed UK sanctions targeting illegal Israeli settlements in the West Bank. These sanctions aim to penalize companies involved in supporting such settlements, raising questions about the involvement of certain stakeholders in the Rosebank oil field.

Environmental organizations and politicians, including Green Party leader Zack Polanski, have expressed worries about the connection between Rosebank and the Israeli company Delek Group. Last year, Delek Group was listed in a UN database for allegedly providing services to illegal settlements in occupied Palestinian territories. Delek Group owns Ithaca Energy, which holds a 20% stake in the Rosebank project. Delek has denied involvement in the settlements and insists that its inclusion in the database was a mistake. Meanwhile, campaign group Uplift, known for successfully challenging the Rosebank project in court last year, has coordinated with Stop Rosebank and Greenpeace in urging the government to clarify how the new sanctions will apply to Delek.

The government’s stance has hardened in recent months under Foreign Secretary Ed Miliband, who announced measures against companies and individuals facilitating settlement expansion, including bans on importing goods from these illegal areas. Legal challenges continue as groups like Uplift seek a definitive statement on whether companies such as Delek will be affected by these sanctions. Ithaca Energy has defended its position, highlighting its compliance with corporate governance standards, contributions to the UK treasury, and role in the country’s energy security. Delek Group remains intent on challenging their listing in the UN database, aiming for immediate removal.

The fate of Rosebank, alongside the Jackdaw gas field near Aberdeen, carries significant political implications. Previously approved by the Conservative government in 2023, Rosebank’s development was stalled by a court challenge led by environmental campaigners. The responsibility to approve the project now rests with Energy Secretary Miatta Fahnbulleh, serving as a test of the current administration’s approach to oil and gas. Andy Burnham, the prime minister, is reportedly inclined toward continued drilling within the North Sea’s existing licenses, contrasting with Miliband’s known reservations during his tenure as Labour’s energy secretary. The decision also holds potential diplomatic repercussions, given US pressure for increased North Sea drilling and differing approaches to sanctions on Israeli settlements. Activists like Uplift’s executive director Tessa Khan have called for a strict policy that ensures no North Sea oil revenues support companies at risk of sanctions. Meanwhile, the Israeli government has condemned the UK’s sanctions, labeling them as hostile toward Israel amid ongoing tensions surrounding illegal settlements and recent violence in the West Bank

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