Chevron Casts Doubts on Rosebank Project

US-based Chevron could decide not to proceed with its $10 billion Rosebank oil project, casting doubts for oil and gas explorations in the UK’s North Sea. 

According to the Wall Street Journal, the company said it was still working with partners Austria’s OMV and Denmark’s Dong Energy, but rising costs in the sector could hinder the project. 

"The joint venture has not decided the path forward, but Chevron's view is that the project does not currently offer an economic value proposition that justifies proceeding with an investment of this magnitude. Chevron's focus continues to be about making the right decisions that are not driven by schedules and timelines," the company said according to the Wall Street Journal.

Also on Friday, Statoil is reported to postpone its investment in the Bressay heavy-oil field.

In this sense, two of the largest projects in the UK North Sea could been scaled down. Analysts see negative consequences for the UK and its ambition to foster indigenous oil and gas production.