The Government has given the green light for gas production at the Jackdaw field in the central North Sea, east of Aberdeen.

For the many contractors and freelancers who work across the UK energy sector, it is a welcome signal that skilled offshore work is set to continue for years to come.

Announced on 21 October, Energy Secretary Miatta Fahnbulleh agreed that the North Sea Transition Authority (NSTA) can grant consent for production at the field, which is already licensed.

What has been approved

At its peak, Jackdaw is expected to increase domestic gas production by around six per cent. The field has a working life of up to 11 years and the developer, Adura, estimates it will add around £2.9 billion to the UK economy.

The decision follows the Supreme Court’s 2024 ruling in the Finch case, which requires operators to consider the emissions from burning the oil and gas they extract.

Having weighed this up, the Energy Secretary concluded that Jackdaw will not prevent the UK from meeting its legally binding carbon limits or its 2050 net zero target.

Good news for jobs

Adura estimates that Jackdaw will create 27 new direct jobs and safeguard 273 existing roles that would otherwise have been lost.

Behind those headline figures sits a wider supply chain of engineers, technicians, project managers and specialist consultants, many of whom work on a contract basis.

The field is also seen as important to extending the life of other North Sea infrastructure, including the Shearwater hub it connects to, which helps keep neighbouring assets and the work around them viable.

Wider opportunities for contractors

Jackdaw is one part of a bigger picture. Alongside the decision, the Government set out several measures that could create work for contractors well beyond a single gas field.

Decommissioning is one of the biggest and the Government expects the sector to support up to 25,000 skilled jobs over the next decade and attract up to £25.6 billion in investment.

It has launched a consultation on new guidance for decommissioning complex infrastructure and formally asked Shell to submit its Brent decommissioning programme, a decision that has been under review since 2017.

For existing fields, the Government is asking the regulator to look at urgent cases for developing already explored areas near licensed fields, ahead of legislation on new Transitional Energy Certificates. Talks have also begun with industry leaders on a refresh of the North Sea Transition Deal.

On the renewables side, the Chancellor has announced a new Energy Wealth Fund, starting with a £2 billion injection, which will reinvest North Sea tax revenues in renewable and low carbon projects.

More than £100 billion has been invested in renewable and low carbon energy since 2024 and this week alone SSE confirmed supply chain contracts for the Berwick Bank B offshore wind farm that will support 400 skilled jobs across Scotland.

Many of the skills used offshore transfer well into decommissioning and offshore wind. For contractors, that points to a broader and more stable pipeline of work as the sector changes.

What contractors should think about now

If you are lining up new work on the back of these announcements, a little planning now can make a real difference.

• IR35 – Review the status of every new engagement. Where a medium or large client is issuing a status determination, make sure it reflects how you actually work.
• Expenses – Keep clear records of travel and accommodation costs. What you can claim depends on how each engagement is set up, so it pays to check before you start.
• The Budget – The Energy Wealth Fund was announced ahead of the Budget, which may bring further changes for contractors and small businesses. Keep an eye on the detail when it lands.

Whether you already work in the energy sector or are thinking about moving into it, the Cogent team can help you get your finances set up properly from the start.