Shell selling stake in controversial Cambo oil field

Shell is selling its stake in the controversial Cambo oil field, it has been announced.

Located west of Shetland, the project is the second largest undeveloped oil and gas discovery in the British North Sea.

The oil major is looking for a buyer for its 30 percent stake.

Cambo has been the focus of many protests and Shell has been rumored for months to be looking for someone to do its part.

The remaining 70% of the field is owned by Ithaca Energy.

Ithaca said the two companies have agreed on several possible outcomes.

Shell could sell its entire stake, but if it manages to find a buyer for just part of the stake, it could turn its remaining stake over to Ithaca.

If a buyer wishes to acquire more than Shell’s 30% interest, Ithaca will sell up to 19.99% of its interest in the project, it said.

Simon Roddy, Shell’s Senior Vice President of UK Upstream, said: “Following an internal review, we have decided to sell our 30% working interest in Cambo and we have a process in place with Ithaca Energy for the sale of Shell’s interest in the field agreed this year.

“We wish Ithaca Energy well in the future development of the field, which will be important to maintaining the UK’s energy security and maintaining domestic production of the fuels people and businesses need.”

Alan Bruce, Chief Executive of Ithaca, said: “Our agreement with Shell represents a significant step towards the development of Cambo, the second largest undeveloped field on the British continental shelf, and a key factor in maintaining the UK’s future energy security.”

He added: “Ithaca Energy remains committed to investing in the UK North Sea but the impact of the revised Energy Profit Levy and the resulting fiscal instability continue to limit our investment opportunities.

“We are actively and constructively working with the UK Government to achieve the fiscal stability needed to make key investment decisions that support the UK’s long-term energy security.”