‘A complete fabrication’: Government denies claims Ed Miliband has banned new North Sea oil licences

The Department for Energy Security and Net Zero has denied reports that Ed Miliband has banned the North Sea oil regulator from issuing any outstanding drilling and exploration licences, calling them “a complete fabrication”.

Earlier today, The Telegraph claimed that the new energy security and net zero minister had overruled his officials to stop the North Sea Transition Authority (NSTA) from issuing new licences, even those that were in the final round of approval with the regulator.

But Miliband’s department hit back at the claims, telling City A.M.: “This piece is a complete fabrication – it invents meetings and decisions that have not taken place.

“As previously stated, we will not issue new licences to explore new fields. We will also not revoke existing oil and gas licences and will manage existing fields for the entirety of their lifespan.

“We are working with the North Sea Transition Authority to ensure a fair and balanced transition in the North Sea.”

A spokeswoman added that nothing had changed from the position it set out in Labour’s manifesto ahead of the election.

The manifesto said the party would “ensure a phased and responsible” transition away from drilling in the North Sea that would recognise “the proud history of our offshore industry and the brilliance of its workforce”.

It also acknowledged that oil and gas production would be a part of the UK energy mix for “decades to come” but will focus on transitioning the UK away from its reliance on fossil fuels with the establishment of state-owned energy firm GB Energy.

Were Miliband to have withdrawn the licences, it could have left some North Sea oil firms millions of pounds out of pocket having prepared bids before the general election was called that were in the final throes of being approved.

The NSTA launched its most recent North Sea licensing round in 2022 during Liz Truss’s short tenure as Prime Minister.

The controversial round, which drew opposition from environmental campaigners, prompted applications from over 70 companies. It has already resulted in several licences, but it is believed that five were outstanding before general election was called.

A spokesperson for NSTA said: “We will follow the policy direction of the government of the day.”

And a spokeswoman for the trade body Offshore Energies UK said: “Both the government and the NSTA have confirmed that this story is incorrect.”

The Department for Energy Security and Net Zero has been approached for comment.