Ithaca Energy has agreed to buy Shell’s stake in the Cambo oil and gas field.
Ithaca said in its press release that the acquisition of Shell’s 30% stake will have minimal short-term cost exposure for the company.
The business stressed that the acquisition will give it full control over the progression of future development of Cambo, which it called the second largest undeveloped oil and gas discovery in the UK North Sea.
Consideration for the asset is payable on the earlier of first oil or receipt of proceeds from any subsequent sale of an active interest in Cambo by Ithaca Energy, and is subject to Ithaca Energy’s proceeding with FID and/or the NSTA that provides the development consent. , Ithaca summed up.
“We are pleased to conclude the marketing process with Shell and assume full ownership of the Cambo development,” said Alan Bruce, CEO of Ithaca Energy.
“Our primary focus remains the delivery of our BUY, BUILD and DRIVE strategy, including the future development of Cambo, subject to tax conditions. We believe Cambo has an important role to play in providing energy security and economic benefit in the UK, while reducing overall emissions intensity,” he added.
The Cambo field is located in the west of the Shetland region. The development provides Ithaca Energy with long-term production growth at a low expected unit operating cost per barrel, the company said.
With its modern, energy-efficient design and potential for electrification, Cambo could be one of the lowest emission-intensive assets in the North Sea, Ithaca noted.
The field is expected to produce at less than half the CO2 intensity of the average UK field, enabled by the FPSO design, which includes features such as being fully electrified ready (subject to connection availability on the net), the zero routine toast and the Sevan FPSO hull design. the reduction in energy demand, the company emphasized.
To contact the author, please email andreson.n.paul@gmail.com
