The UK Government is expected to approve the controversial Jackdaw gas field off the coast of Aberdeen on Wednesday.
Energy Secretary Miatta Fahnbulleh and Chancellor John Healy will be in the North East to make the announcement.
While the news will be welcomed by the sector, it will upset environmental groups and risks triggering a row with some Labour MPs, who believe the decision breaches a commitment made in the party's manifesto not to issue any new oil and gas licences in the North Sea.
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The decision has already been much delayed.
Ministers were reported to be holding it back until after the Holborn and St Pancras by-election earlier this month, in which Labour were being challenged by Green leader Zack Polanski.
Energy Secretary Miatta Fahnbulleh is expected to make an announcement
Last year, the Court of Session voided permits for Jackdaw and the larger Rosebank oil field issued by the previous Conservative government, ruling that the original decisions to greenlight the projects were unlawful because they did not take into account the climate impact of burning the extracted oil and gas.
That forced Adura, a joint venture between Shell and Norway's Equinor, to reapply for new licenses.
It estimates Jackdaw could meet around 6% of the UK’s North Sea gas production, enough to heat 1.4 million homes.
Mr Burnham said in Motherwell last week the Government was “not backing away” from either decision.
He has called for a “pragmatic approach” to domestic oil and gas, saying: “We won’t be able to stop using oil and gas for some time. That’s just a fact.”
Campaigners dispute the benefits. Tessa Khan, executive director of Uplift, which brought the original legal challenge, said: “Jackdaw would do nothing to cut our energy bills and make no meaningful difference to UK energy supply.”
Meanwhile, the Scottish Greens have urged the SNP not to abandon Nicola Sturgeon’s presumption against new oil and gas.
In 2023, in what was ultimately one of her final acts as First Minister, Ms Sturgeon** published the Scottish Government's draft energy strategy**, which set out a presumption against new oil and gas exploration.
While the final version of that strategy has yet to materialise, ahead of the election Mr Swinney said energy security should be considered in any new decisions on further exploration, though he stopped short of backing specific projects such as Rosebank and Jackdaw.
Mark Ruskell said: "If Andy Burnham approves Jackdaw and Rosebank he will be playing fast and loose with our climate. It would do nothing to cut bills or boost energy security while locking Scotland into more fossil fuels for decades to come.
“It is a decision for Westminster, but it is absolutely right for Scotland to take a position. The whispers that the SNP is set to change course are becoming a foghorn. It would send a terrible message at the worst possible time.
“We are in a climate emergency, and both our governments need to act like it."
Over the weekend, delegates at the SNP conference annual event in Aberdeen backed a motion brought by energy minister Stephen Gethins, which called on the party to "champion policies that safeguard Scottish jobs and skills, reduce reliance on imported fuels and use the economic benefits of Scotland’s remaining oil and gas resources to help fund the transition to a net-zero economy”.
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In a statement following the debate, Mr Gethins said: “Our position is clear – the UK Government must make decisions on North Sea oil and gas projects on a case-by-case basis, with climate compatibility and energy security as key considerations.
“And it is absolutely critical that if any new production goes ahead, then the economic benefits should be felt in Scotland, rather than flowing to the Treasury.
“The UK Government must also replace the energy profits levy with a fair system to protect jobs, energy security and investment in our energy sector.
“The Scottish Government committed in the programme for government to publishing a refreshed energy strategy to provide long-term certainty for industry and communities."