Royal Dutch Shell has reportedly been denied approval by an UK regulator to develop the Jackdaw gas field in the North Sea.

The decision was given after examining the environmental statement submitted for the project, industry sources told Reuters.

Shell spokesperson was quoted by the news agency as saying: “We’re disappointed by the decision and are considering the implications.”

Discovered in 2005, the Jackdaw field is located approximately 275km east of Aberdeen in the central North Sea, UK. The field’s reservoir is located nearly 5,182m beneath the seabed.

However, the reason behind the rejection of approval by the Offshore Petroleum Regulator for Environment and Decommissioning (OPRED) for the environment statement is not clear, said the report.

OPRED, which is responsible for regulating environmental and decommissioning activity for offshore oil and gas operations in the UK, is part of the Department for Business, Energy & Industrial Strategy.

In January last year, BG International, the field operator, submitted the environmental statement for the Jackdaw gas field development project to the UK authorities.

BG International, an affiliate of Shell UK, holds a 74% interest in the field, while ONE-Dyas E&P holds the remaining 26% stake.

The project development involves a not permanently attended wellhead platform (WHP) with four wells tied-back to the nearby Shearwater platform through a 30km pipeline.

Located approximately 30km northwest of the Jackdaw field, Shearwater platform has been producing since 2000.

The Jackdaw field is an ultra high pressure high temperature (uHPHT) gas condensate field. It is spread across blocks 30/02a, 30/02d and 30/03a DEEP of the UK Continental Shelf (UKCS) in a water depth of approximately 78m.

In July this year, Shell Offshore has taken a final investment decision (FID) for the Whale development in the US Gulf of Mexico.

Located nearly 321km, southwest of Houston, the offshore field is expected to produce first oil in 2024.