The development of the Cambo gas and oil field moved a step closer following a deal between Shell and Ithaca Energy to sell the latter a 30% interest in the field.
Located west of the island of Shetland, the Cambo field is the second-largest field in the UK Continental Shelf (UKCS) that still remains to be developed, so it is regarded as an important means for ensuring UK’s energy security. While environmental campaigners object to new fossil fuel developments like Cambo, its proponents point out that its production will have below half of the carbon intensity of the average UKCS asset with no routine flaring, as well as the potential to be fully electrified.
Ithaca Energy’s CEO, Alan Bruce, said that the deal:
“…with Shell represents a meaningful step towards the development of Cambo, the second largest undeveloped field in the UKCS and a key asset in helping maintain the UK’s future energy security. Securing a new owner for Shell’s stake is an important step in Ithaca Energy progressing to Final Investment Decision.”
He added that despite his company’s commitment to investing in the UKCS, the consequences of the recently changed Energy Profit Levy continued to limit Ithaca’s investment ability. He said the company was working constructively with the UK Government to establish sufficient fiscal stability to allow investment decisions to be made.
Speaking for the oil and lubricant giant Shell, Simon Roddy, the senior vice president for upstream in the UK, said the decision to sell Shell’s stake had followed an internal review.