Cambo oilfield development could be back on after takeover

theguardian.com:

The Cambo oilfield off the Shetland Islands could now be developed after a $1.5bn (£1.1bn) takeover of the owner of the controversial site.

Siccar Point Energy, which put the project on “pause” when its partner Shell pulled out late last year after fierce opposition from environmental activists, has been acquired by Ithaca Energy.

Ithaca Energy said Cambo and the nearby Rosebank sites are “two of the largest undeveloped and most strategically important discoveries in the UK North Sea”.

Alan Bruce, the chief executive of Ithaca Energy, said: “The development of the Cambo and Rosebank fields is a huge opportunity to not only help secure the UK’s energy future for at least another quarter of a century, but also to create thousands of direct and indirect jobs in the process.”

Shell pulled out of the development of the site in December saying the economic case for investment was “not strong enough”.

However, last month a report claimed the energy company was reviewing its decision after the price of oil rocketed, making the project more financially viable.

A spokeswoman for Shell, which still owns a 30% stake in Cambo, said it had nothing to add to its statement in December, when it pulled out of the project.

The war in Ukraine has put a spotlight on the need for the UK to reduce its reliance on foreign energy sources, particularly from Russia.

On Thursday the UK government released its energy strategy in full – trailed heavily the previous day – which included a new licensing round for oil and gas projects in the North Sea.

The Cambo site has not yet received final approval from UK regulators.

Ithaca Energy said: “The Cambo field on its own is anticipated to deliver up to 170m barrels of oil equivalent during its 25-year operational