ENVIRONMENTAL campaigners are launching a legal challenge against the British government over its support for the production of North Sea oil and gas.

Representatives from a number of activist groups have applied to the High Court for a judicial review of the state-owned Oil and Gas Authority’s (OGA) strategy. 

The case argues that the OGA’s interpretation of its legal duty to “maximise economic recovery” fails to take account of public subsidies.

The campaigners, represented by law firm Leigh Day, say that the OGA’s plans are unlawful and ignore existing government funding to the industry worth billions, claiming that the proposed tax breaks will make Britain the most profitable country in the world for oil companies to develop offshore fields.

Lawyer Rowan Smith at Leigh Day said: “Our client’s case is that the OGA’s new strategy encourages companies to produce oil and gas without considering the economic repercussions on the public purse and the UK as a whole. 

“This means that, in some circumstances, such production is not economic for the UK as a whole, but the OGA is still seeking to maximise it. 

“The case argues that is unlawful, regarding the terms of the OGA’s legal duty, and also irrational, because it will result in increased levels of oil and gas production, in conflict with the UK’s legal duty to achieve net-zero emissions by 2050.” 

The new OGA strategy came into force in February 2021, a few weeks before the government announced that it would continue to allow oil and gas companies to explore the North Sea for new reserves.

The campaigners’ application argues that the new strategy is irrational and inconsistent with a “net-zero” target because it will lead to more oil and gas being extracted than would otherwise be the case if uneconomic fossil fuel stayed in the ground.

The three claimants are being supported by Uplift and co-ordinating with Paid to Pollute, a campaign supported by environmental groups including Greenpeace UK, Friends of the Earth Scotland and 350.org.

Greenpeace UK oil campaign leader Mel Evans said: “The UK has one of the lowest effective tax rates in the world for oil extraction. 

“Our government is backing an industry that’s hanging workers out to dry, trashing the climate and costing our economy more money than it brings in.”

The OGA was approached for comment.