Norwegian state energy firm Equinor could withhold future UK funding if the government fails to sanction new oil and gas extraction in the North Sea.
Anders Opedal, chief executive of the company, indicated that alternative markets would be considered if green lights are denied for the Jackdaw and Rosebank projects.
The stance comes despite Labour promising a complete ban on new North Sea drilling within its election manifesto.
However, last month prime minister Andy Burnham noted that he would adopt a "pragmatic" approach towards North Sea oil and gas ahead of pending rulings on Jackdaw and Rosebank "as we build a bridge to a clean energy future as we confront the climate crisis".
In an interview with the BBC, Mr Opedal said the decision on whether to greenlight the two sites was “a political choice”.
He told the broadcaster: “The question will be: is the UK investable in the future? I hope it will not come to that.
“It’s a political choice. The North Sea oil and gas industry started on the UK side.
“We learned from the UK and it’s actually the same geology on both sides of the border – several fields actually cross it.
“The licence was awarded in 2001, the discovery was made in 2004 and the final investment decision in 2023.”
Last month almost 600 climate scientists, health professionals and conservationists called for Mr Burnham to reject applications for new drilling licences.
In a letter to Mr Burnham and Energy Secretary Miatta Fahnbulleh, the group of 575 experts warned against approving the oil field, arguing the decision would fly in the face of climate science and see the UK breach its national and international climate commitments.
Recent reports suggest the UK Government will approve new North Sea drilling, starting with the Jackdaw gas field located 150 miles east of Aberdeen.
Ms Fahnbulleh is also set to make a decision on Rosebank – the largest untapped oil field in the North Sea, which lies some 80 miles north-west of Shetland – in the coming months.
The decision over whether to approve the projects will be a key environmental test for Mr Burnham, who has been facing pressure from climate activists to “stick to the spirit of Labour’s manifesto commitment” and refuse consent.
This article was written by Dave Clark from The Independent and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.