Shell has called on the UK government to approve its planned developments in the North Sea and to continue backing carbon capture and storage (CCS) initiatives. The company’s chief executive, Wael Sawan, highlighted that uncertainty over the future fiscal framework for North Sea operations is driving investment away from the region.

Shell and its joint venture partner Equinor, through their North Sea partnership Adura, are seeking government authorization to develop the Jackdaw gas field and the Rosebank oil field. These projects have been stalled following a court ruling that invalidated the original consents. Sawan urged the government to accelerate the approval process for these sites, arguing that increased domestic energy production would enhance tax revenues, create jobs, and strengthen the UK’s energy security.

Sawan emphasized the need for fiscal stability, stating that a clearer and more durable fiscal regime would encourage greater investment into the North Sea sector. “The most important thing for the energy sector is stability,” he said.

Separately, concerns have been raised about the future of CCS funding amid government plans to reduce budgets in certain departments, including those overseeing energy, to allocate more resources to defense. Shell’s chief executive defended the strategic value of CCS in the UK, noting the country’s advantage due to its depleted reservoirs suitable for storing carbon dioxide and its existing industrial clusters capable of capturing emissions.

Sawan acknowledged the government’s difficult decisions regarding budget priorities but stressed that support for CCS remains vital. “Whatever they do, the biggest plea is stability,” he added.

The company’s appeal comes against a backdrop of evolving energy policy and fiscal uncertainties, highlighting the tension between securing investment, meeting climate targets, and balancing competing government spending priorities.