Cambo oilfield development paused
A week since Shell pulled out of the controversial Cambo oilfield development, operator Siccar Point is pausing the project.
Private-equity backed Siccar Point (70% share and operator) said that following the Shell (30% partner) announcement not to go ahead with investment, the project was unable to progress ‘on the originally planned timescale’.
Chief Executive Officer Jonathan Roger said: ‘We are pausing the development while we evaluate next steps.’ And added: ‘We continue to believe Cambo is a robust project that can play an important part of the UK’s energy security, providing homegrown energy supply and reducing carbon intensive imports, whilst supporting a just transition.’
The move was welcomed by environmental activists who had been highly critical of the project. Greenpeace has called on the UK and Scottish governments to end support for all new oil and gas infrastructure.
Similarly, International Energy Agency Executive Director Fatih Birol has suggested halting all future oil and gas field developments in order to limit carbon emissions and hold the global temperature to 1.5oC, in line with the Paris Agreement and COP26 agreement recently.
However, concerns have been raised by Gary Smith, GMB union General Secretary that: ‘Cheerleaders for Cambo’s shutdown are throwing energy workers and UK energy security under a bus. The energy union says the decision to pause the Cambo oilfield project amounts to a surrender of the national interest.’
Cambo, which is located about 125km north west of the Shetland Islands, was expected to deliver 170mn boe and 53.5bn ft3 of gas during its 25-year operational life.
UK Government approval will also be needed to develop the field.
