Ed Miliband's controversial 'tie-back' plans for North Sea oil and gas under consideration

Energy secretary Ed Miliband is reportedly expected to soften the UK government’s position on new drilling by looking at ways to maintain existing fields for their lifetime.

In a move that has been described by one insider as a “fudge”, speculation is mounting the government will approve a series of tie-back projects, allowing new fields to be explored via adjacent existing sites.

Labour’s manifesto at the last election promised the government would “not issue new licences to explore new fields” in the North Sea. But in the face of mounting pressure to kick-start the economy - and from trade unions worried about mounting job losses - The Sunday Times reported that UK government lawyers had been tasked with investigating whether new oil reserves could be explored without breaking the pledge.

However, the proposal has been condemned by organisations campaigning for a rapid transition away from oil and gas production, who warned it was a “fantasy” to suggest that billions of barrels of oil were within the reach of existing fields

A government consultation on the North Sea’s future published in March noted the “important role” of tie-backs and other iterative development activities, such as infill well drilling, to maintain production from existing fields.

But the potential endorsement of tie-back projects - essentially subsea pipelines that connect wells to existing production facilities - is likely to prove controversial.

One source told The Sunday Times the move would “give the sector a few more years” and “sustain the supply chain for longer”, aiding the eventual transition to renewables.

The new approach is expected to be set out in the government’s response to a consultation on managing the North Sea’s transition from oil and gas to cleaner energy. This, along with a response to a consultation on the windfall tax, is expected to be published alongside November’s budget.

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It comes after Downing St and the Treasury, along with the GMB union, pushed Mr Miliband to adopt a more “pragmatic” approach.

A source close to the energy secretary told the newspaper: “We are working to ensure a policy outcome that delivers on the twin objectives of the manifesto: ensuring a world-leading position on no new licences to explore new fields and to maintain existing fields for their lifetime. We will deliver both.”

David Whitehouse, chief executive of Offshore Energies UK, said: “We would welcome a pragmatic approach - one that prioritises domestic oil and gas production over imports while supporting the build out of renewables. After years of uncertainty, this must be the start of a broader package of reforms, including changes to the energy profits levy, if we are to support skilled jobs, boost the economy, and reduce the UK’s increasing reliance on imports.

But Tessa Khan, the founder and executive director of Uplift, said: “If we want to keep supply chains here, we need investment in manufacturing and assembly renewables here, including in ports. Eking out a bit more oil and gas from what is already an unattractive investment project is not the answer.”