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Rosebank oil field given goahead by regulators

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The controversial Rosebank offshore development off Shetland has been granted consent by regulators.

Located 80 miles west of Shetland, Rosebank is the UK’s largest untapped oil field and is estimated to contain up to 300 million barrels of oil.

Development and production approval has been given to owners Equinor and Ithaca Energy, following reassurances over environmental concerns.

The plan has faced widespread criticism due to its impact on climate change.

Supporters of the project say it is vital for the energy security as it will reduce reliance on imports.

Its owners say it will create about 1,600 jobs during the height of construction, support 450 UK-based jobs during its lifetime, and provide “a significant amount of tax revenues for the treasury”.

It comes after the UK government said in July that it would issue hundreds of new licences for oil and gas exploration in the North Sea.

But last month 50 MPs and peers from all major parties raised concerns Rosebank could produce 200 million tonnes of carbon dioxide and urged then Energy Secretary Grant Shapps to block it.

rosebank graphic

It has been predicted that Rosebank could produce 69,000 barrels of oil a day at its peak, and about 44 million cubic feet of gas per day in its first 10 years.

Production is expected to begin in 2026/27 but a senior executive with Norweigan state oil company Equinor has admitted the new field will not be electrified at that point.

Electrification of the extraction process is one of the key industry pledges for reducing its production emissions.

The oil and gas regulator, North Sea Transition Authority, said approval had been awarded “in accordance with our published guidance and taking net zero considerations into account throughout the project’s lifecycle”.

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Prime Minister Rishi Sunak said it “makes sense” for the UK to use its own oil and gas supplies as the UK makes the transition to renewables.

The UK has a target to hit net zero – emitting no more greenhouse gases such as carbon dioxide than the amount taken out of the atmosphere – by 2050.

“This is the right long-term decision for the UK’s energy security,” he added.

Meanwhile Energy Security Secretary Claire Coutinho said its value to the economy would give the UK greater energy independence.

“We will continue to back the UK’s oil and gas industry to underpin our energy security, grow our economy and help us deliver the transition to cheaper, cleaner energy,” she added.

Rosebank protestersIMAGE SOURCE,GETTY IMAGES
Image caption,

Anti-Rosebank protesters outside the Department for Energy Security and Net Zero earlier this year

Opponents argue the oil and gas produced from Rosebank will be sold at world market prices, so the project will not cut prices for UK consumers.

“It won’t make the slightest difference to people’s energy bills”, the Green Party MP Caroline Lucas claimed on BBC Radio 4’s Today programme.

Equinor – which is the majority owner of Rosebank – confirmed that during a briefing for journalists earlier.

“If the UK needs Rosebank oil, it will go to the UK through open market mechanisms”, said Arne Gurtner, Equinor’s senior vice president for the UK.

‘Concerns unaddressed’

Scotland’s Energy Secretary Neil Gray raised concerns that the majority of what will be extracted from Rosebank will go overseas rather than contribute to domestic energy security.

“We are therefore disappointed that approval has been given by the UK government while these concerns remain unaddressed,” he added.

His colleague Stephen Flynn – the SNP’s Westminster leader and MP for Aberdeen South, a constituency with strong links to the oil and gas industry – did not oppose the oil field outright.

He said that if the UK government was considering oil and gas projects “through the prism of energy security, net zero, jobs, opportunities and concurrent renewables investment… then of course it should go ahead.”

“Where I have concerns is I don’t think the UK government is looking at projects through that prism,” he said.

Labour leader Sir Keir Starmer has confirmed that his party will not revoke the licence for Rosebank if it wins the election.

But he added that no new licences would be granted if Labour gained power.

He told the BBC’s Political Thinking with Nick Robinson podcast that allowing the North Sea exploration to go ahead would provide “the stability that we desperately need in our economy”

Scottish Green MSPs were among those protesting outside the UK government building in Edinburgh
Image caption,

Scottish Green MSPs were among those who joined a protest against the Rosebank decision outside the UK government building in Edinburgh

Meanwhile it was condemned as an “utter catastrophe” by the Scottish Greens, the SNP’s partners in the Scottish government.

Climate spokesperson Mark Ruskell said it was the “worst possible choice at the worst possible time” and showed “total contempt for our environment and future generations”.

He was among dozens of climate activists demonstrating against the Rosebank decision out the UK government offices in Edinburgh.

Another, Bryce Goodall, said: “We absolutely outraged that this has been decided in the midst of a cost of living crisis… this oil field is not going to do anything to lower energy bills or provide energy security whatsoever so I’m absolutely incensed with anger here.”

Juliet Dunstone, who was also part of the protest, said: “We need to have a just transition and we need to prioritise people who are working in oil and gas to give them those green jobs and get them out of these polluting jobs that they’re stuck in because we need to avert the climate crisis immediately or millions of people will die.”

But Russell Borthwick, chief executive of Aberdeen and Grampian Chamber of Commerce, said: “Rosebank will make an important contribution to UK and European energy security, create several hundred new jobs here in Scotland and result in over £6bn being spent within the UK supply chain which is anchored in Aberdeen and Aberdeenshire.

“Today’s announcement is a welcome shot in arm for the UK energy sector which will give investors, operators and the wider supply chain confidence as they strive to provide the power we need here and now and transition towards a net zero future.”

For more than half a century, North Sea oil has been at the heart of economic and political debate in Scotland.

The discovery of the “black gold” turned Aberdeen into the oil capital of Europe and fuelled the Scottish independence movement.

Critics of the UK’s approach say it should have followed Norway’s lead by investing revenue generated by the boom in a sovereign investment fund.

Now the industry has moved westwards into the stormy waters of the North Atlantic ocean, the focus of the debate has switched to the environmental impact of drilling but those old arguments about economic benefit have been revived too.

For decades Shetland prospered handsomely from oil thanks to a deal the local council struck with energy firms to allow the construction of a terminal at Sullum Voe.

However the oil from Rosebank will not be processed on Shetland but offloaded by tanker and sold on the international market.

Supporters say the project, run by the Norwegian state energy firm Equinor, will create hundreds of jobs and bring in billions of pounds in investment.

But critics say the biggest winner is Norway.

— Reports /TrainViral

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Six tonnes of cocaine found in banana shipment

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Sniffer dogs in Ecuador have found 6.23 tonnes of cocaine hidden in a banana shipment, police say.

The dogs alerted their handlers, who seized 5,630 parcels filled with a white substance that later tested positive for cocaine.

The shipment was destined for Germany, officials said, and would have been worth $224m (£173m) had it reached its destination.

Five people had been arrested following the discovery, according to the prosecutor-general’s office.

Police said they had found the massive cocaine haul during a routine inspection of container stored at Posorja deepwater port south-west of Ecuador’s largest city, Guayaquil.

The cocaine parcels had been hidden beneath crates of bananas destined for export.

One of those arrested in connection to the drug discovery was a representative of the export company responsible for the shipment, whom prosecutors said had been present at the inspection and gave officials the names of the four other suspects.

They include the managers of the banana plantation where the cocaine is suspected to have been added to the fruit shipment, as well as the driver who took the container to the port.

Ecuador has become a major transit country for cocaine produced in neighbouring Peru and Colombia, with transnational criminal gangs using Ecuador’s ports to ship the drug to Europe and the US.

Last year, Ecuadorean security forces seized more than 200 tonnes of drugs, most of it cocaine. Only the US and Colombia seized more drugs in 2023.

Gangs have caused a wave of violent crime in Ecuador, leading President Daniel Noboa to declare a state of emergency and deploy tens of thousands of police officers and soldiers in an effort to combat them.

These security forces have stopped large amounts of cocaine from being shipped to Europe.

In January, officers found the largest stash ever to be seized in Ecuador – 22 tonnes of cocaine – buried in a pig farm.

However, extortion, kidnappings and murders remain high in the Andean country.

Reports /Trainviral/

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Thailand expands v-free entry to 93 countries

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Thailand has expanded its visa-free entry scheme to 93 countries and territories as it seeks to revitalize its tourism industry.

Visitors can stay in the South-East Asian nation for up to 60 days under the new scheme that took effect on Monday,

Previously, passport holders from 57 countries were allowed to enter without a visa.

Tourism is a key pillar of the Thai economy, but it has not fully recovered from the pandemic.

Thailand recorded 17.5 million foreign tourists arrivals in the first six months of 2024, up 35% from the same period last year, according to official data. However, the numbers pale in comparison to pre-pandemic levels.

Most of the visitors were from China, Malaysia and India.

Tourism revenue during the same period came in at 858 billion baht ($23.6bn; £18.3bn), less than a quarter of the government’s target.

Millions of tourists flock to Thailand every year for its golden temples, white sand beaches, picturesque mountains and vibrant night life.

The revised visa-free rules are part of a broader plan to boost tourism.

Also on Monday, Thailand introduced a new five-year visa for remote workers, that allows holders to stay for up to 180 days each year.

The country will also allow visiting students, who earn a bachelor’s degree or higher in Thailand, to stay for one year after graduation to find a job or travel.

In June, authorities announced an extension of a waiver on hoteliers’ operating fees for two more years. They also scrapped a proposed tourism fee for visitors flying into the country.

However some stakeholders are concerned that the country’s infrastructure may not be able to keep up with travellers’ demands.

“If more people are coming, it means the country as a whole… has to prepare our resources to welcome them,” said Kantapong Thananuangroj, president of the Thai Tourism Promotion Association.

“If not, [the tourists] may not be impressed with the experience they have in Thailand and we may not get a second chance,” he said.

Chamnan Srisawat, president of the Tourism Council of Thailand, said he foresees a “bottleneck in air traffic as the incoming flights may not increase in time to catch up with the demands of the travellers”.

Some people have also raised safety concerns after rumours that tourists have been kidnapped and sent across the border to work in scam centres in Myanmar or Cambodia.

fatal shooting in Bangkok’s most famous shopping mall last year has also caused concern among visitors.

Reports /Trainviral/

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Royal Mail will deliver letters forever

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The prospective new owner of Royal Mail has said he will not walk away from the requirement to deliver letters throughout the UK six days a week, as long as he is running the service.

“As long as I’m alive, I completely exclude this,” Czech billionaire Daniel Kretinsky told the BBC.

Mr Kretinsky has had a £3.6bn offer for Royal Mail accepted by its board.

Shareholders are expected to approve the deal in the coming months, but the government also has a say over whether it goes ahead.

Currently the Universal Service Obligation (USO) requires Royal Mail to deliver letters six days a week throughout the country for the same price. But questions have been raised over whether the service could be reduced in the future.

In an exclusive interview with the BBC, Mr Kretinsky also said he would be willing to share profits with employees, if given the go-ahead to buy the group.

However, he appeared to reject the idea of employees having a stake in Royal Mail, which unions have called for in exchange for their support.

The Royal Mail board agreed a £3.6bn takeover offer from Mr Kretinsky in May for the 500-year-old organisation, which employs more than 150,000 people. Including assumed debts, the offer is worth £5bn.

But because Royal Mail is a nationally important company, the government has the power to scrutinise and potentially block the deal.

As well as keeping the new government on side, Mr Kretinsky also faces the task of convincing postal unions that the proposed deal will benefit employees.

The USO is a potential sticking point for both the government and unions.

Royal Mail is required by law to deliver letters six days a week and parcels five days a week to every address in the UK for a fixed price.

How well this has actually been working in practice is a different matter. Ten years ago, 92% of first class post arrived on time. By the end of last year it was down to 74%, according to the regulator Ofcom.

Last year the regulator fined Royal Mail £5.6m for failing to meet its delivery targets.

Royal Mail has been pushing for this obligation to be watered down. It wants to cut second class letter deliveries to every other weekday, saying this will save £300m, and lead to “fewer than 1,000” voluntary redundancies.

‘Unconditional commitment’

Mr Kretinsky has committed in writing to honouring the USO, but only for five years.

And after that, in theory, the new owners could just walk away from it.

However, Mr Kretinsky told the BBC: “As long as I’m alive, I completely exclude this, and I’m sure that anybody that would be my successor would absolutely understand this.

“I say this as an absolutely clear, unconditional commitment: Royal Mail is going to be the provider of Universal Service Obligation in the UK, I would say forever, as long as the service is going to be needed, and as long as we are going to be around.”

Mr Kretinsky added that the written five-year commitment was “the longest commitment that has ever been offered in a situation like this”.

Woman's hand posting a letter into a red post box

Another potential stumbling block for the deal, however, is how the company will be structured.

Unions would like to see the company renationalised, but Dave Ward, general secretary of the Communication Workers Union (CWU), told the BBC that would be “difficult in the current political and economic environment”.

Instead, what the CWU is pushing for is “a different model of ownership” – that is, where the employees part-own the business.

To get its support for the takeover, the union wants employees to share ownership of the company, along with other concessions including board representation for workers.

It says profit sharing is “not going to be enough to deliver our support and the support of the workforce”.

If the union doesn’t get what it wants, it won’t rule out industrial action, Mr Ward said. Its members went on strike in 2022 and 2023.

Although Mr Kretinsky said he is “very open” to profit sharing, he is not in favour of shared ownership.

“I don’t think the ownership stake is the right model,” he said. “The logic is: share of profit, yes, [but an] ownership structure creates a lot of complexity.

“For instance, what happens if the employee leaves? He has shares, he is leaving, he is not working for the company, he [still] needs remunerating.”

Mr Kretinsky said he didn’t want to create “some anonymous structure” but instead “remunerate the people who are working for the company, and creating value for the company”.

The union is also concerned about job losses and changes to the terms and conditions of postal workers’ contracts.

Mr Kretinsky has guaranteed no compulsory redundancies or changes in terms and conditions but only until 2025.

“If we are more successful, and we have more parcels to be delivered, we need not less people, but we need more people,” he said. “So really, job cuts are not part of our plan at all.”

He said if the management, union and employees work together, “we will be successful”.

Another concern is the potential break-up of the business.

The profit for Royal Mail’s parent company last year was entirely generated by its German and Canadian logistics and parcels business, GLS. Royal Mail itself made a loss.

Mr Kretinsky has promised not to split off GLS or load the parent company with excessive debt, although borrowings will rise if the deal goes through.

But he has a way to go to convince the CWU.

“I can’t think of any other country in the world that would just just hand over its entire postal service to an overseas equity investor,” Mr Ward of the CWU said.

However, Mr Kretinsky said that the postal unions “do understand that we are on the same ship, and that we need this ship to be successful, and that if we are there, we don’t have any real problems to deal with, because the sky is blue, and it’s blue for everybody.”

The union cannot stop this deal but the government can block it under the National Security and Investment Act.

Business Secretary Jonathan Reynolds has said he will scrutinise the assurances and guarantees given and called on Mr Kretinsky to work constructively with the unions.

Mr Kretinsky may say that he and the unions are ultimately on the same ship but, as things stand, they are not on the same page.

Who is Daniel Kretinsky?

Daniel Kretinsky started his career as a lawyer in his hometown of Brno, before moving to Prague.

He then made serious money in Central and Eastern European energy interests.

This includes Eustream, which transports Russian gas via pipelines that run through Ukraine, the Czech Republic and Slovakia.

He then diversified into other investments, including an almost 10% stake in UK supermarket chain Sainsbury’s and a 27% share in Premier League club West Ham United.

The Czech businessman is worth about £6bn, according to reports.

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