Jersey Oil & Gas plc reported slow progress at Buchan Horst as it awaits proven compliance with government policy regarding scope 3 emissions for UK North Sea projects.
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In its audited 2025 financial results, the company said it had yet to complete the effect of downstream, or end-use, emissions from its upstream operations in its environment impact assessment.
JOG added: “While the consultation provided clarity on this, the associated guidance issued by the Offshore Petroleum Regulator for the Environment and Decommissioning (Opred) inevitably requires some interpretation as to how this is achieved.
“Additional work has been completed on this to establish a robust methodology for calculating Scope 3 emissions and setting out the significance of these in the context of UK national and international emissions targets.
“However, it is expected that the ultimate guide for the information that will need to be presented on the project will be evidenced in the submissions made for the Jackdaw and Rosebank developments in the UK.”
Adura, a joint venture between Equinor and Shell, has submitted revised EIAs, which include scope 3 emissions, and expects the results “later this year”.
“The agreement on a more rational fiscal mechanism for taxing North Sea oil and gas production during periods of exceptionally high prices is a welcome and important step forward,” added chief executive officer Andrew Benitz.
“However, delaying its introduction to 2030 will come too late for many in the basin.”
GROWTH
At the end of 2025, JOG held total cash reserves and term deposits of £11 million and no debt.
Cash running costs have been reduced to under an annualised £1.5m, with main service providers and employees on lower wages.
JOG’s long term finances are “underpinned” by the terms of the farm-out agreements with operator Neo Next+ and Serica.
“These provide for the company’s 20% share of the Buchan project expenditure included in the approved FDP [field development plan] budget to be fully carried by our two joint venture partners.
“A further $20 million cash tranche is payable under the terms of the agreements following approval of the Buchan FDP by the NSTA [North Sea Transition Authority] and receipt of all the associated regulatory and legal consents.”
Buchan holds in excess of an estimated gross 100 million barrels of oil equivalent with further potential in the Greater Buchan Area in the UK central North Sea.
In a joint statement, Mr Benitz and non-executive chairman Les Thomas added: “It is naturally frustrating for us all to be in a period where patience is the name of the game.
“Positively, however, the political and societal desire for homegrown energy is greater than it has been for many years and this provides an encouraging backdrop for projects like Buchan.
“We believe that there remains more to do to grow the business in the North Sea, especially as the number of companies operating in the basin reduces.”
JOG retains 20% of the Buchan project, while Neo Next+ owns 50% and Serica has 20%.