A British regulator rejected Royal Dutch Shell's plans to develop the Jackdaw gasfield in the North Sea after considering its environmental statement, industry sources said on Wednesday.
"We’re disappointed by the decision and are considering the implications," a Shell spokesperson said.
It was unclear on what grounds the Offshore Petroleum Regulator for Environment and Decommissioning (OPRED) refused to approve the environmental statement for the field's development.
The Department for Business, Energy and Industrial Strategy, under whose umbrella OPRED operates, did not immediately reply to a request for comment.
The decision comes as Britain and other European countries were saddled with record natural gas and oil prices due to a supply crunch ahead of the cold winter months.
It also comes days before Britain is due to hold the COP26 climate conference bringing decision makers from all over the world together to find a way to keep global warming below 1.5 degrees Celsius compared with pre-industrial temperatures.
(Reporting by Ron Bousso; writing by Shadia Nasralla; Editing by Leslie Adler and Marguerita Choy)