Energy Giant Shell has confirmed that UK authorities have extended the licence for the Cambo oil field.
Environmental campaigners claimed the move keeps the controversial project on “life support”.
The licence for developing the area, which lies to the west of Shetland, had been due to expire on Thursday.
A spokeswoman for energy giant Shell, which co-owns the field with Siccar Point Energy, confirmed on Wednesday that the extension has been granted.
Shell withdrew from the development in December and recently stressed there is “no change to our position”, although it also noted that the extension gives time to “evaluate all potential future options”, especially in light of the war in Ukraine.
The spokeswoman said: “The North Sea Transition Authority has awarded Siccar Point Energy and Shell UK an extension to the underlying licences containing the Cambo field which were due to expire.
“At this time there is no change to our position of December 2021, but the extension to the licences will allow time to evaluate all potential future options for the project.”
In December, Shell - which has 30% equity in the proposed development - said it had concluded the economic case for investment was “not strong enough”.
That decision came after the Scottish Government spoke out against developing the field, with First Minister Nicola Sturgeon saying in November: “I don’t think that Cambo should get the green light.”
Since then fears over the future of Russian oil have sent prices soaring, at the same time as consumers in the UK are facing rocketing energy bills.
Environmental campaigners at Friends of the Earth Scotland argued that the two-year licence extension is “simply dragging out the inevitable rejection of Cambo”.
The group’s Caroline Rance said: “The UK Government is trying to keep this doomed oil field on life support but they are simply dragging out the inevitable rejection of Cambo and the transition away from fossil fuels.
“There is no safe future for new oil and gas production in the North Sea, so Cambo and all new field developments must be rejected.
“Shell and Siccar Point Energy have had years to develop the case for opening the Cambo field, and have failed - two more years won’t make the project look any better in terms of its devastating climate impacts or the urgency of the transition away from fossil fuels.
“The Government must reject all new oil and gas projects and instead rapidly scale up renewable energy while supporting a just transition for those workers and communities currently reliant on the oil and gas industry.”
The Stop Cambo campaign group said: “Cambo was a bad idea in 2021 - it’s a terrible idea now - Cambo won’t lower bills but it does put us on a path to wreck the climate.”
Separately, Cabinet Secretary for Net Zero Michael Matheson announced a delay to its “refresh” of the 2017 Energy Strategy for after the local authority elections.
He confirmed its energy strategy and just transition plans would be launched in August this year after its initial planned Spring release.
Last June, the Minister for Environment and Land Reform announced its draft energy strategy and Just Transition plan would be published in the spring this year.
The strategy will lay out government plans to move away from fossil fuels while also preserving jobs in the north east of Scotland – where as many as 100,000 people work in the energy sector.
In the Programme for Government, ministers said they would establish a Just Transition Plan for all sectors, with the energy industry due to be the first – published alongside a new energy strategy.
But in an answer to a parliamentary question, Matheson said on Wednesday that the document will be pushed back because of the “fast-moving energy landscape”.
He added: “The revised timeline will allow time for robust evidence and analysis to be produced and take account of ongoing projects, which are progressing at pace in response to the rapidly evolving global energy environment.
“The UK Government is due to produce an energy security strategy, which has been postponed, and we will also need to take this into consideration for Scotland’s energy strategy.”
A just transition, Matheson said, is a “non-negotiable aspect of our journey to net zero” and extending the timescale will allow more time for stakeholder engagement.
Scottish Conservative net zero spokesman Liam Kerr said: “This delay shows the SNP-Green government were looking for a quick headline when they announced their so-called Just Transition Plan, which actually has no plan in it whatsoever.”
Along with the plan, the Scottish Government announced a £500m Just Transition Fund as part of the deal between the SNP and the Greens.
“We also still have absolutely no detail about where the first £20m of the Just Transition Fund is going because the coalition itself doesn’t even know,” Kerr added.
“This is why I have submitted a written question to ask if the release of this funding will also now be delayed alongside the plan.
“The sector and our local authorities deserve better than being fed false promises by ministers who want to shut down our oil and gas industry.”
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