As reported by Reuters, following "comprehensive screening" of the Cambo field, Shell "concluded the economic case for investment in this project is not strong enough at this time, as well as having the potential for delays," the company said in a statement.
Located 125 km north-west of the Shetland Islands, 30 km south-west of Rosebank and 50 km north of Schiehallion, the field was discovered in 2002 and had five wells drilled into the structure. Siccar Point acquired a 100% operated interest in the field from the takeover of OMV (U.K.) in January 2017 and brought Shell UK in as a partner (30% interest) in May 2018.
The field could deliver up to 170 million boe during its 25-year operational life, according to Siccar.
Jonathan Roger, CEO of Siccar Point Energy said: “Cambo remains critical to the UK’s energy security and economy. Whilst we are disappointed at Shell’s change of position, we remain confident about the qualities of a project that will not only create over 1,000 direct jobs as well as thousands more in the supply chain, but also help ease the UK’s transition to a low carbon future through responsibly produced domestic oil instead of becoming even more dependent on imports, with a relatively higher carbon intensity.
“We will continue to engage with the UK Government and wider stakeholders on the future development of Cambo.”
Roger continued: “Given Shell’s decision, we are now in discussions with our contractors, supply chain and wider stakeholders to review options for this important development.”
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