Cambo receives licence extension: press
Cambo oil and gas field in the UK North Sea has had its licence extended by a further two years despite Shell's declaration that it will leave the project, Reuters reported March 30.
The underlying licences that make up Cambo were originally due to expire on March 31, Reuters said.
Shell decided to suspend its investment in Cambo in December 2021 having concluded the economics of the project were not "strong enough", but many felt fierce opposition from NGOs on environmental grounds had forced its hand.
The UK-headquartered major still owns a 30% stake, and has not said whether it plans to divest its shareholding. Private equity-backed company Siccar Point Energy owns the remainder, and also operates the project.
Despite media suggestions it could change its mind, Shell still says there has been no official change in its position. It says the licence extension will simply allow it to evaluate "all potential options".
With tighter oil and gas markets as buyers refuse to take Russian supplies, there has been renewed interest in developing North Sea oil and gas resources, to stop the UK becoming dependent on expensive and carbon inefficient imports.
Siccar Point suspended Cambo following Shell's departure, but it continues to make the economic case for progressing toward a final investment decision. Following the NTSA extension, Siccar Point said it would work with "co-venturer Shell and the UK government to map out the next steps on Cambo".
Cambo largely contains around 170mn barrels of oil and condensate, but should the project go ahead around 53.5bn ft3 of natural gas would also be extracted, over a lifespan of around 25 years. Aside from Siccar Point, the wider UK North Sea industry will be watching to see whether Cambo can be revived, as concerns grow that the UK will soon depend heavily on imported oil and gas.