Shell is hoping to find a buyer for its stake in the controversial Shetland oil field, which has become a key focus for Britain’s fossil fuel campaigners.
The oil company still owns a 30% stake in the Kambo oil field more than a year after it questioned the future of the project by terminating its investment, citing a weak business case and risk of delay.
Plans to develop Kambo, the North Sea’s second-largest undeveloped oil and gas field, have sparked fierce protests from climate campaigners and the threat of legal action if ministers allow new drilling.
Simon Roddy, head of Shell’s UK exploration and production, said the company has looked into the project and has reached a deal with Cambo’s majority owner, Ithaca Energy, to sell its stake.
“We wish Ithaca Energy the best of luck with the future development of the field, which will be essential to maintaining the UK’s energy security and sustaining domestic fuel production that people and businesses need,” Roddy said.
Shell wants to sell all 30% of the shares to a new buyer with the option to sell a smaller stake, and sell the rest of its operating stake to Ithaca Energy. If Shell finds a buyer who wants more than 30%, Ithaca could add another 19.99% of its stake to create a working share of nearly 50%.
Alan Bruce, CEO of Ithaca, said the agreement with Shell was an important step towards the development of the Cambo field, which could become “a key asset in helping to support the UK’s energy security going forward.”
At the end of 2021, Shell announced that it would forgo any future investment in Cambo, in what many climate campaigners believe would deal a “mortal blow” to the project.
Prospects for the oil field revived last year when Ithaca Energy became majority owner, paying around $1.5bn (£1.2bn) to buy Siccar Point Energy, the privately-backed operator of the field.
