Finance
UK court dismisses challenge to issuing of oil and gas exploration licences
Published by Global Banking & Finance Review®
Posted on November 28, 2025
3 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 28, 2025
3 min readLast updated: January 20, 2026
The UK High Court ruled that issuing oil and gas licences was lawful, dismissing a climate impact challenge by Oceana UK. Licences allow exploration, with further assessments needed before production.
LONDON (Reuters) -Britain's decision to issue more than two dozen oil and gas exploration licences was lawful, London's High Court ruled on Friday, dismissing a challenge by campaigners who said the government failed to consider the impact on climate change.
Marine conservation organisation Oceana UK brought the case over 28 licences granted in May 2024 under Britain's previous government, which it also argued did not properly assess the risk to protected marine life.
Britain's energy department – which did not defend similar cases after a 2024 Supreme Court ruling – opposed the case, saying the licences only allow early exploration and further assessments would be carried out before oil or gas is produced.
Oceana's case, which was heard in March, was the latest challenge over fossil fuels to reach court, as environmental campaigners increasingly turn to the law to try to tackle climate change, with mixed success.
CLIMATE CHANGE IMPACT
The licences were issued as part of the North Sea Transition Authority's oil and gas licensing round and grant their holders the right to search for fossil fuels.
An exploration licence does not necessarily lead to production, though Oceana's lawyers said in court filings that they provide "a clear pathway towards extracting oil and gas".
Its lawyer Zoe Leventhal said the wider impact should be considered at the licensing stage, when the authorities can assess "all the sites across all the areas at the same time".
Britain's Department for Energy Security and Net Zero, however, argued it was not possible to know the impact on climate change before the scale of any production was known.
Judge Tim Mould dismissed Oceana's challenge but said any adverse impact on marine habitats caused by developments had to be assessed at every stage.
Hugo Tagholm, executive director of Oceana UK, said the government must make clear – as it did in court – that honouring existing licences does not guarantee that consent for production will be granted.
Oceana's case comes after the British government dropped its defence in other challenges after the Supreme Court ruled planning authorities must consider the impact of burning, rather than just extracting, fossil fuels when approving projects.
This included the approval of two vast North Sea oil and gas fields, which was overturned by a Scottish court in January, casting doubt on the future of new fossil fuel projects.
(Reporting by Sam Tobin and Michael Holden; Editing by Kate Holton and Alison Williams)
Climate change refers to significant changes in global temperatures and weather patterns over time. It is primarily driven by human activities, especially the burning of fossil fuels, leading to increased greenhouse gas emissions.
Marine conservation involves the protection and preservation of ecosystems in oceans and seas. It aims to safeguard marine biodiversity and ensure sustainable use of marine resources.
The High Court is a senior court in the UK that deals with serious civil cases and appeals from lower courts. It has the authority to interpret laws and make binding decisions.
An exploration license allows companies to conduct geological surveys and exploratory drilling to assess the presence of oil and gas reserves in a designated area.
Explore more articles in the Finance category
