AIM-listed Jersey Oil & Gas, an independent upstream oil and gas company focused on the UK Continental Shelf region of the North Sea, notes the press release issued today by NEO Energy, the Buchan Horst licence operator, following the UK Government's recent announcement concerning its plans for a consultation on new environmental guidance for oil and gas firms. The Government has determined that such guidance is necessary in light of the recent Supreme Court 'Finch' ruling requiring regulators to consider the impact of hydrocarbon combustion, Scope 3 emissions, in the Environmental Impact Assessment for new projects. The Government is aiming to conclude its consultation by Spring 2025.
The press release issued by NEO noted:
'NEO and its 100% owner HitecVision have taken the decision to materially slow down activities across all development assets in the portfolio. In relation to the Buchan Horst project NEO awaits clarity around the UK regulatory and fiscal framework so that the full impact can be assessed. This will inevitably delay first oil timing in relation to the project, which was previously forecast to be late 2027. The Joint Venture will seek a licence extension in order to continue technical evaluation in light of these changes to tax and environmental consents'.
Andrew Benitz, Chief Executive Officer, commented:
'Whilst demand for hydrocarbons continues during the energy transition, homegrown energy is the right solution. A project like Buchan has the potential to produce some of the lowest emission barrels of any project globally. Emissions arising from the combustion or use of those hydrocarbons will result in the same emissions as comparable barrels regardless of where they are produced. Homegrown energy should always trump imports, creating domestic economic growth, jobs and valuable UK tax receipts.'
The Company will issue its Interim Financial Results for the six month period ending 30 June 2024 on 19 September 2024. JOG's cash position at the end of the first half of 2024 was approximately £13 million and the Company benefits from no financial exposure to Buchan project costs as a result of the farm-outs that have been completed with NEO and Serica Energy.
Source: Jersey Oil & Gas
