Ithaca Energy and Shell have reached an agreement that could speed up the decision to develop the west of Shetland Cambo oilfield, the Israeli-owned producer said in a May 5 stock-exchange announcement. It involves buying all or some of Shell’s 30% stake, depending on the outcome of the six-month marketing campaign that Shell has just begun.
Ithaca CEO Alan Bruce said: “Securing a new owner for Shell’s stake is an important step in Ithaca Energy progressing to final investment decision.”
He also said the company needed better fiscal terms following the windfall tax: “We are actively engaging in a constructive manner, with the UK government in pursuit of the fiscal stability required to make critical investment decisions that will support the UK’s long-term energy security.”
The field is second largest undeveloped oil and gas discovery in the UK North Sea. It is expected to produce at less than half the CO2 intensity than the average UK field. Shell, Ithaca’s only partner at present, dropped its plan to develop the field in 2021.
Below is the Ithaca-operated Alba platform (credit: Ithaca).