The UK Government will not fight a legal challenge against plans to develop two North Sea oil fields.
Environmental groups Greenpeace and Uplift had brought legal claims to stop drilling in the untapped oil sites of Rosebank and Jackdaw.
It comes after the Supreme Court ruled that the environmental impact of new oil fields should be considered when granting licences.
The Government said its decision not to fight the challenge will "save the taxpayer money".
Rosebank is 80 miles to the west of Shetland and contains around 300 million barrels of oil, making it the UK's last major undeveloped oil site. Jackdaw is 150 miles east of Aberdeen.
The licences for the two fields have not been withdrawn. Energy giants Shell and Equinor - who are the developers hoping to drill at the sites - can still fight the challenge.