Shell Pulls Out of Cambo

Shell Pulls Out of Cambo
Siccar Point is now in discussions with its contractors, supply chain and wider stakeholders to review options for the development.

Siccar Point Energy has confirmed that Shell, its partner in the Cambo development, has taken the decision to not progress its investment in the asset at this stage. 

Given Shell’s decision, Siccar Point said it is now in discussions with its contractors, supply chain and wider stakeholders to review options for the development. The decision comes after Siccar Point and Shell carried out many months of due diligence and assurance, stakeholder and regulatory consultation, Siccar Point outlined.

“Cambo remains critical to the UK’s energy security and economy,” Jonathan Roger, the chief executive officer of Siccar Point, said in a company statement.

“Whilst we are disappointed at Shell’s change of position, we remain confident about the qualities of a project that will not only create over 1,000 direct jobs as well as thousands more in the supply chain, but also help ease the UK’s transition to a low carbon future through responsibly produced domestic oil instead of becoming even more dependent on imports, with a relatively higher carbon intensity,” Roger added in the statement. 

“We will continue to engage with the UK Government and wider stakeholders on the future development of Cambo,” the Siccar Point CEO went on to say.

Cambo would help to reduce the volume of imports required by delivering up to 170 million barrels of oil equivalent during its 25-year operational life, according to Siccar Point. The company also highlighted that the development will be on average 50 percent lower in emissions from the outset than existing fields “thanks to a vast range of measures”.

Last month, industry body Oil & Gas UK warned that if new projects like Cambo are not approved then UK production would plummet with gas output falling up to 75 percent by 2030. The organization added that projects like Cambo would be among the world’s cleanest oil and gas developments. 

Located 77 miles north-west of the Shetland Islands, the Cambo field was discovered in 2002 and had five wells drilled into the structure. Siccar Point acquired a 100 percent operated interest in the field from the takeover of OMV (U.K.) in January 2017 and brought Shell UK in as a partner in May 2018.

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