LOS ANGELES/WASHINGTON (Reuters) – The Biden administration is approving a scaled-back version of ConocoPhillips (NYSE:COP)’ $7 billion oil and gas drilling Willow project in Alaska, the U.S. Department of Interior said on Monday, drawing cheers from Alaskan officials and the oil industry but criticism from environmental advocates.

The decision follows an aggressive eleventh-hour campaign from opponents who had argued the development of the three drill sites in northwestern Alaska conflicts with President Joe Biden’s highly publicized efforts to fight climate change and shift to cleaner sources of energy.

The fate of the project has been closely watched as Biden seeks to balance his goals of decarbonizing the U.S. economy and restoring U.S. leadership on climate change while also increasing domestic fuel supplies to keep prices low.