London, May 12, 2026, 21:09 BST
Jersey Oil & Gas pointed to a slowdown in its Greater Buchan Area development, blaming stalled government consultations and delays in regulatory sign-off. That’s putting Labour in a tighter spot over the fate of one of the biggest undeveloped oil centers left in the UK North Sea. The AIM-listed group still pegs the area’s gross resources at over 100 million barrels of oil equivalent, with Buchan as the main target.
Timing’s turning out to be a critical issue for the North Sea, squeezed by old infrastructure demanding fresh investment soon, and a policy overhaul from the government that keeps the Energy Profits Levy running until 2030—unless price triggers bring it to an early close. For industry bosses, that uncertainty isn’t just a line item on spreadsheets; it’s actively dictating where money goes next.
Andrew Benitz, Chief Executive at Jersey Oil & Gas, called the government’s shift to a price-based tax regime a positive step, but flagged the 2030 start date as problematic. “Delaying its introduction to 2030 will come too late” for many operators, he said. Benitz argues that moving up the timeline could help “reopen the UK North Sea” and spur investment in Buchan. Energy Pedia
Labour is facing criticism for slowing progress in the Buchan region, according to a Tuesday report from The Telegraph, which put the area’s reserves at 100 million barrels. Jersey, in its own statement, criticized the time lost to ongoing consultations over the UK North Sea’s regulatory and fiscal future.
Buchan hasn’t been sanctioned yet. Jersey Oil & Gas says the joint venture continues to weigh development choices, following setbacks that stalled earlier efforts to reuse the Western Isles FPSO—a ship-shaped unit for offshore oil processing and storage. That vessel is still in the mix, but it’s just one of several possibilities, the company said.
Cavendish kept its Buy on Jersey Oil & Gas, with the target price steady at 537 pence. “Buchan remains an attractive project” for Jersey and its partners, the broker wrote. It flagged Jersey’s fully carried 20% stake in a development of over 70 million barrels, £11 million cash on hand at year-end, no debt, plus another $20 million due if a field development plan gets approved. Proactiveinvestors NA
The shares hardly budged following the update, hovering near 104 pence in late London trading and valuing the company at roughly £34 million. Cavendish’s target remains well above the current price, but the gap underscores lingering hurdles—Buchan still faces regulatory approvals, must pin down its development path, and awaits more clarity on the tax situation.
The landscape has changed. Jersey now counts NEO Next+ and Serica Energy as partners in Buchan. Adura, the North Sea venture between Shell and Equinor, is moving forward with a beefier portfolio, including Rosebank and Jackdaw. According to Shell and Equinor, Adura launched as the UK North Sea’s biggest independent producer, holding stakes in 12 producing assets and projects.
Buchan’s future could hinge on how those competing projects pan out. Jersey Oil & Gas pointed out that if Jackdaw and Rosebank get the nod, it would clarify the path for follow-on developments like Buchan—especially when it comes to Scope 3 emissions, which cover the carbon released when customers eventually burn the oil and gas. In June 2025, the UK government tightened requirements, mandating that these downstream emissions be factored into environmental impact assessments.
The North Sea Future Plan lays out that ministers won’t be granting new licences for oil and gas exploration, but they’ll keep current fields running as long as possible. There’s a carve-out, though: Transitional Energy Certificates. Those let companies tap resources close to existing fields—enough to keep some older assets ticking over, without greenlighting an entirely new exploration phase.
Even with added clarity, Jersey faces the reality that a quick sanction isn’t guaranteed. The company pointed out that the sector is still working through the government’s late-2025 consultation results, OPRED sign-off is still in play, and the Buchan partnership has to lock in a production plan. Falling oil prices, fresh environmental scrutiny, or delays on the tax front could all stretch the timeline.
Jersey continues to keep a lid on expenses. The company posted a pre-tax loss of £1.7 million for 2025—an improvement from last year’s £3.5 million. Its annual cash burn now runs under £1.5 million. That extends the runway, but the company hasn’t moved toward a development call yet.
