UK-based oil major Shell is selling its 30% working interest in the Cambo oil field and has agreed on a marketing plan for the stake with Ithaca Energy.
The Cambo field, which is situated in the West of the Shetland region, is said to be the second-largest undeveloped oil and gas discovery in the British North Sea.
Ithaca, which owns a 70% stake in the project, the firms have agreed on multiple potential outcomes for Shell to sell the entire 30% or a portion of its stake.
In case Shell does not sell its complete 30% stake, it can sell the rest of its stake to Ithaca, except for the portion that is already sold to a third party.
If Shell offloads the entire stake and the buyer desires to have a larger equity share, Ithaca Energy has the option to sell up to 19.99% of its working interest in Cambo.
Shell Senior Vice President UK Upstream Simon Roddy said: “Following an internal review, we have decided to sell our 30% working interest in Cambo and have agreed a process with Ithaca Energy for the sale of Shell’s stake in the field this year.”
The sale is anticipated to clear the path for the development of the field, which has been facing resistance from environmentalists who are striving to stop new oil and gas resource projects in the North Sea.
In 2021, Shell decided to pull back from the Cambo oil field development project due to weak financials at the time.
Ithaca Energy CEO Alan Bruce said: “Securing a new owner for Shell’s stake is an important step in Ithaca Energy progressing to Final Investment Decision. Ithaca Energy’s primary strategic focus is to maximise sustainable shareholder returns through the delivery of our BUY, BUILD and BOOST strategy, including the future development of Cambo.
“Ithaca Energy remains committed to investing in the UK North Sea, however, the impact of the amended Energy Profit Levy and the fiscal instability it has created continues to constrain our ability to invest.”