The developers of the Wressle oil field extension have warned that planning approval for the project is likely to be overturned by an upcoming legal challenge.
Statements from two of the project’s stakeholders, Union Jack Oil and Europa Oil and Gas, said that North Lincolnshire Council has informed the developers that it will not seek to resist the proposed legal challenge to the project.
In addition, the statements said that the Wressle partners have concluded they would not be in a position to defend the proposed legal claim.
They fully expect that the planning consent will be quashed once the court process has concluded.
North Lincolnshire Council previously approved planning consent to the extension of the oil project near Scunthorpe.
The proposed legal challenge is based on the council omitting to request data that details the likely Scope 3 GHG (greenhouse gas) emissions as part of its process in granting planning approval.
The developers added that, once the court process concludes, they will seek a new screening opinion from the council with additional supporting data that details the likely Scope 3 GHG (greenhouse gas) emissions.
Depending on the outcome of this screening opinion, either the existing live application would be redetermined by the council or an Environmental Impact Assessment would be submitted.
Union Jack and Europa added that the legal challenge will not affect ongoing operations or production at Wressle, which remains profitable.
The extension works will include two wells, along with the gas processing facilities and underground gas pipeline to connect the field to the local distribution network.
When the decision was made in September, it raised fears that the project would be subject to challenge in the courts.
The move follows a decision by the UK Supreme Court on the Finch development requiring oil and gas projects to take account of all pollution expected from production – known as “scope three” – in environmental impact assessments (EIAs).
In addition to Union Jack (AIM: UJO) and Europa (AIM: EOG), which hold a 40% and 30% stake in the project, Wressle is operated by Egdon Resources, which holds the remaining 30%.
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