Britain’s North Sea industry has suffered a hammer blow after Shell pulled out of the Cambo oil field development.
Now, the future of this field that could provide 1,000 new jobs as well as thousands in the supply chain is uncertain.
Oil giant Shell said the economic case for involvement in the site, which needs £1.9billion in investment, is no longer strong enough. There is also the possibility of delays.
Critics claimed that First Minister Nicola Sturgeon contributed to this decision, announcing that she wouldn’t support Cambo and other new fields. Climate groups criticised Cambo.
Shell held a 30% share in Cambo with Siccar Point Energy, the majority shareholder.
Critics allege that First Minister Nicola Sturgeon contributed to this decision, announcing that she wouldn’t support Cambo and other new fields.
The development, which is 75 miles west of Shetland, could produce up to 170 billion barrels of oil over 25 years – enough to power the UK for four months. This development would also be able to produce enough natural gas to provide power for 1.5 million homes over a single year. It is possible that the UK may become less dependent upon imported oil if this project fails.
Cambo is currently undergoing a climate assessment. The Oil and Gas Authority will inform ministers within weeks if it has been given the go ahead.
Jonathan Roger, chief executive of Siccar Point Energy, said: ‘Cambo remains critical to the UK’s energy security and economy… We will continue to engage with the UK Government and wider stakeholders on the future development of Cambo.’
Shell said continued investment in oil and gas remains ‘critical’ to keep the lights on. A spokesman said: ‘We believe the North Sea – and Shell in it – have a critical role to play in the UK’s energy mix, supporting the jobs and skills to enable a smooth transition to Britain’s low-carbon future.’
Oil giant Shell said the economic case for involvement in the site, which needs £1.9billion in investment, is no longer strong enough. There is also the risk of delays
Oil giant Shell said the economic case for involvement in the site, which needs £1.9billion in investment, is no longer strong enough. There is also the risk of delays