Ithaca takes full control of Cambo following Shell deal

13/09/2023

ITHACA Energy has struck a deal to take full control of the Cambo oil and gas field in the North Sea.

The firm told investors on Tuesday morning that it had acquired Shell’s 30% stake in the West of Shetland site, bringing its ownership stake to 100%.

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In late 2021, Shell pulled its support for Cambo citing economic reasons, after the project became a lightning rod for climate activists seeking to halt the development of new oil and gas resources.

The acquisition, pending regulatory approval, has “minimal near-term cost exposure” which will be paid if and once the field starts producing oil or if Ithaca sells a stake, Ithaca said in a statement.

This would amount to around $77.85million, an Ithaca spokesperson told Reuters.

Alan Bruce, Chief Executive Officer, Ithaca Energy, commented: “We are pleased to conclude the marketing process with Shell and to take full ownership of the Cambo development. 

“Our primary focus continues to be the delivery of our buy, build and boost strategy, including the future development of Cambo, subject to fiscal conditions. 

“We believe that Cambo has an important role to play in providing energy security and economic benefit to the UK, while reducing overall emissions intensity.”

A Shell spokesperson said: “After comprehensive screening of the Cambo development, we concluded at the end of 2021 that we did not wish to move forward with the project at that time.

“Having now agreed the sale of our stake in it, we wish Ithaca every success in developing the field.”

Cambo is the second-largest untapped oil and gas discovery in the UK after Rosebank, which Ithaca also holds a stake in. Both projects are major battle grounds for climate campaigners.

Cambo is estimated to hold up to 800million barrels of oil in-place, with the first phase expected to recover 170million barrels.

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