The controversial Cambo oil field off Shetland has now been developed after the owner of the field was bought by another energy company.
Siccar Point Energy – which put the project on hold following Shell’s withdrawal – has now been acquired by Ithaca Energy in a $1.5 billion (£1.125 billion) deal.
The new company is committed to developing Cambo and the nearby Rosebank field.
Activists have criticized plans to develop cambo, warning that exploitation would worsen climate change.
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Ithaca Chief Executive Alan Bruce said Cambo and Rosebank are “two of the largest undeveloped and strategically important discoveries” in British waters.
Their development, Mr Bruce added, is a “huge opportunity not only to help secure the UK’s energy future for at least another quarter century, but also to create thousands of direct and indirect jobs in the process”.
A spokeswoman for Shell, which still owns a 30% stake in Cambo, told the BBC it had nothing to add to its statement in December when the oil giant said it had “concluded that the economic case for investment are not strong enough in this project at this time as well as the potential for delays.”
The Cambo oil field is believed to contain 800 million barrels of oil, but its development has yet to receive final approval from UK government regulators.
Scotland’s First Minister has also said the project should not be given the green light because of concerns about climate change.
The Scottish Government has said unlimited fossil fuel extraction is inconsistent with its climate commitments.
A spokesman added: “We have consistently urged the UK Government to urgently re-evaluate any approved oil licenses where drilling has not yet started against our climate commitments.
“New oil and gas fields do not represent a timely solution to improve our energy security for years to come. Even once operational, the fossil fuels produced will still be affected by the same global market forces that have contributed to the current energy price crisis.
The UK government has been asked for comment.
In December, Siccar Point Energy, the project’s controlling shareholder, announced it was pausing the Cambo project a week after its partner Shell exited.
Shell had a 30% stake in the field but said the economic case for investing in the North Atlantic project was “not strong enough”.
Siccar Point Energy said it would continue talks with the UK government over the future of the field.
On Wednesday, the UK government released its energy strategy, which included plans to boost Britain’s energy independence and tackle rising prices.
The plans included a new round of licensing for oil and gas projects in the North Sea – something the Scottish Government opposed, saying it was not a long-term solution to energy problems.
The UK Government said its commitment to more North Sea projects recognizes “the importance of these fuels for the transition and energy security”, adding that UK production of gas has a lower carbon footprint than that imported from abroad.
But its climate advisers said last month gas produced in the UK would be sold internationally and would do little to lower the consumer price.
- Located in the North Atlantic about 125 km (75 miles) north-west of the Shetland Islands.
- The main shareholder is Siccar Point Energy with a 70% stake, backed by private equity investors.
- Siccar Point Energy previously said Cambo could deliver 170 million barrels of oil and 53.5 billion cubic feet of gas over 25 years.
- Exploration licenses date back to 2001, but the UK government needs to approve drilling – which could start as early as 2022.
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