Norway's Supreme Court rules against government in oilfields case, but output unaffected

Norway's Supreme Court ruled on Friday that three offshore oilfield development permits issued by the government were invalid due ‌to a lack of environmental consideration, but said its decision would not force oil companies to curb output. The case was decided on procedural grounds, and the government must now reconsider each oilfield in accordance with the correct requirements to determine whether permits to the oil companies can be reissued, the court said.

The ‌government would rectify shortcomings in the permitting process of the three fields "as soon as possible," Energy Minister Terje Aasland said. He said he did not ‌expect Friday's verdict to affect the fields' production or development, but it would in general make the permitting process tougher. "The basis to make decisions will become more extensive and stricter," Aasland told Reuters.

Greenpeace and Young Friends of the Earth, which brought the lawsuit, argued that the government failed to assess the climate impact from burning the fields' oil and ⁠gas, known ​as Scope 3 emissions. The campaigners hugged in ⁠court, some wiping off tears, hailing the verdict as a milestone in their push to make energy companies in Norway disclose more information about the environmental impact of their operations.

CHANGING ⁠NORWAY'S OIL POLICY "This is a fantastic news for the climate," Greenpeace Norway leader Haldis Tjeldflaat Helle told reporters. "This changes Norwegian oil policy forever."

Two fields — Equinor's Breidablikk and ​Aker BP's Tyrving — are already producing, while the biggest of the three, Aker BP's Yggdrasil, is scheduled to come on stream next year. The court ⁠said the oil companies were not the targets of the lawsuit and thus not parties to the case, and that the ruling therefore would not require them to suspend their ⁠operations.

"However, ​the Energy Ministry must re-examine the matter, ensuring that the correct procedural requirements are followed," said the court, which ruled by six votes to five in the green groups' favour. The companies reiterated that they had not been parties to the case, but said they took notice of the ⁠verdict and would cooperate with the government. Aker BP also said it expected its Yggdrasil project to start as planned next summer.

The Oslo District ⁠Court and the Borgarting Court of ⁠Appeal, which earlier heard the case, also ruled against the government. The green organisations will now consider whether to sue the companies that operate the fields to halt output, a lawyer for the groups, Jenny Sandvig, told ‌Reuters.