Page 10 - EurOil Week 33 2022

EurOil INVESTMENT EurOil

Shell resumes plan to sell

stake in Cambo oilfield

UK SHELL has resumed plans to sell its 30% interest March, however, in light of soaring oil and gas
in the Cambo oilfield West of the Shetlands in prices in recent months triggered by Russia’s war
Cambo is economically the UK North Sea, Reuters reported on August in Ukraine.
unfeasible, according 11, potentially paving a way for the project’s Ithaca acquired a 70% position in the project
to Shell, but another development. in April last year through the $1.1bn takeover of
operator might think Cambo is touted as the second-largest unde- its North Sea rival Siccar Point, stressing that the
differently. veloped resource in the North Sea, with an esti- field was economically viable.
mated 175mn barrels of oil in place (OIP) and Greenpeace has hailed Shell’s decision to pull
some 1.5bn cubic metres of gas. But its develop- out from Cambo as a victory, and this month has
ment has been held up by environmental scru- called for a week of protests against another Shell
tiny, despite heightened concerns about the UK’s development off the UK shore, the Jackdaw gas
future energy security in the wake of Moscow’s field. The company took a final investment deci-
invasion of Ukraine. sion (FID) on Jackdaw in late July after its devel-
According to Reuters, Shell has hired invest- opment plans were approved by the government
ment bank Jefferies to manage the sales process, in the previous month.
after company CEO Ben van Beurden said last Opposition to upstream development in the
month that he could not see the oil major taking UK comes as the country contends with soaring
part in the project because the “economics are energy bills that have prompted the government
simply not supportive enough.” However, the to consider emergency blackout plans this winter
new owner for the stake will most likely support and additional measures to protect vulnerable
development, sources told Reuters. consumers. Cambo could account for as much
Shell in 2018 farmed into the project, which as 8% of UK oil production between 2026 and
at the time was operated by Siccar Point Energy. 2030, a study by Edinburgh-based Wood Mac-
But the major announced in December last kenzie has estimated. The UK oil industry has
year it was withdrawing because of its weak warned that a failure to develop new oil and gas
economics, although the decision also followed fields will leave the country significantly more
a sustained campaign against development dependent on imports in the years to come, rais-
led by Greenpeace and other NGOs. Shell was ing energy prices and resulting in higher emis-
reported to be reconsidering its position in sions. ™

P10 www. NEWSBASE .com Week 33 18•August•2022