Cambo licence extended for two more years amid push for North Sea exploration
The North Sea Transition Authority has extended the licence for the Cambo oil and gas field for a further two years.
The licence was due to expire tomorrow.
The site is co-owned by Shell and Siccar Point Energy – with the companies owning 30 and 70 per cent stakes in the development respectively.
Cambo could potentially provide 800m barrels of oil but the site attracted significant opposition from campaigners while the government regulator considered whether or not to grant a final permit to drill last year.
Shell backed away from the project in December 2021 before any decision was made, citing the potential for delays and a weak economic case for investment.
North Sea industry enjoys revival of interest
Thhe government’s outlook towards North Sea fossil fuels has evolved since then with Prime Minister Boris Johnson considering oil and gas exploration as key to ensuring the UK’s energy security following Russia’s invasion of Ukraine.
Shell is now reportedly considering its outlook on the Cambo oil field.
Sources told the BBC last week that although the company’s official position remains the same, it recognised the “economic, political and regulatory environment had changed enormously” in the past three months.
In its annual report published earlier this mont, it revealed still working with Siccar Point Energy and the UK Government to “map out the next steps” of the Cambo project.
In a statement, a Shell spokesperson told City PM there is no change to its previous position –
A spokesperson said: “At this time there is no change to our position of December 2021, but the extension to the licences will allow time to evaluate all potential future options for the project.”
BP is reportedly pursuing buyers for its closed Foinaven oilfield in the North Sea amid the growing interest in exploration on the UK’s continental shelf.