A disagreement has emerged at the heart of Andy Burnham's government over whether to approve the controversial Rosebank oilfield in the North Sea.
Chancellor John Healey is reported to favour allowing the project to proceed, arguing that Britain must protect its energy security, jobs and investment. However, Energy Secretary Miatta Fahnbulleh, who is responsible for the decision, has indicated that she is leaning towards rejecting the development.
The division comes just days after the government approved Shell's smaller Jackdaw gasfield, angering environmental campaigners who argue that further fossil fuel extraction is incompatible with Britain's climate commitments.
Rosebank would be a substantially larger development, making its fate particularly important to the oil and gas industry. No final government decision has yet been announced, leaving Labour facing a difficult choice between competing economic and environmental priorities.