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Siccar Point Energy E&P has announced it will defer approval of the Cambo development offshore Shetland, UK. The Covid-19 coronavirus pandemic has moved the final investment decision (FID) to the second half of 2021.
Siccar, alongside partner Shell UK, said it would make its FID regarding Cambo in the third quarter of this year.
The Cambo oil field lies in blocks 204/9 and 204/10, approximately 125km north-west of the Shetland Islands offshore UK. It lies at a water depth of 1,100m, one of the deepest fields ever to be discovered in Northern Europe.
Siccar Point CEO Jonathan Roger said: “Cambo remains an extremely attractive development with compelling economics. However, given the uncertainty of the global situation, including whether any people, goods and services can be mobilised in OECD countries, it makes sense to hold-off final approval until some normality returns to the market and a clear and robust path forward can again be established.
“In the meantime, Siccar Point is very well positioned with respect to this downturn having both substantial cash balances and very full hedging for 2020 and 2021.
“During the period of delay, we will continue to mature key aspects of the project to facilitate a swift and efficient ramp-up when market conditions stabilise.”
The company said it will work with supply chain partners to ensure the project FID is ready for next year.
In December 2017, Siccar closed the previously announced farm‐out deal over the Lyon exploration well in the UK Continental Shelf (UKCS) with Ineos UK SNS.
Number of Covid-19 infected cased in the UK has reached 22,141 with deaths standing at 1,408.
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