Rosebank faces sanctions setback

By the Editorial Team · Friday, September 18, 2026

The UK government is considering sanctions against entities linked to Israeli settlements, which may affect Delek Group and its majority-owned operator Ithaca Energy’s Rosebank oil and gas project in the North Sea. This move could delay or restrict the development of the largest undeveloped UK offshore energy project, impacting jobs, energy security, and the broader government strategy on net zero emissions.

Plans for the Rosebank oil and gas field in the North Sea may face renewed challenges as the UK government prepares to introduce sanctions targeting those involved in facilitating Israeli settlements in the West Bank. The move, announced by Foreign Secretary Ed Miliband last week, forms part of a broader package condemning the occupation as “unlawful” and a threat to the two-state solution.

Among the entities expected to be affected is Delek Group, a company listed by the United Nations since 2020 for its role in advancing West Bank settlements. Delek Group holds a majority stake in Ithaca Energy, the operator of the Rosebank project. Ithaca Energy, a FTSE 100-listed company, has emphasized its significance to the UK economy and national energy security, highlighting its contributions through tax payments.

A spokesperson for Ithaca Energy stated that the company upholds “the highest standards of corporate governance” and denies involvement in any illegal settlement activity. Similarly, Delek Group maintains that it “does not support, facilitate or profit from illegal settlement activity.”

Rosebank is regarded as the largest undeveloped oil and gas project within UK territorial waters, and a final decision on sanctions has yet to be confirmed by officials at the Foreign Office. Miliband told Members of Parliament that the government would have the authority to impose sanctions on individuals and companies that support, facilitate, or profit from such activities, with implementation expected within six to nine months. Sanctions could also extend to Ithaca Energy’s operations on other domestic projects.

The government is currently reviewing the future of the Rosebank project following a consultation that closed last month. Separately, a decision on the nearby Jackdaw oil and gas field, also in the North Sea, has been delayed and will be announced after the Holborn & St Pancras by-election. Both projects hold exclusive exploration licenses but require final approval to commence production.

The consultations have sparked debate among Labour MPs, who are divided between prioritizing job creation and energy security and adhering to the government's net zero emissions targets. Industry representatives, including Offshore Energies UK, estimate that Rosebank and Jackdaw could support over 3,500 jobs during peak construction periods.

Some energy experts have urged the government to move forward with approvals. Economist Nick Butler, a former energy adviser to Gordon Brown, called for the prompt approval of both Rosebank and Jackdaw. Earlier this year, Lord Browne, former chief executive of BP, also advocated for the approval of the Jackdaw field.

The Foreign Office declined to comment on potential future designations but reiterated that individuals or companies “that support ... or profit from illegal settlement activity may be considered under the new regime.”

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.