UK North Sea’s Oil and Gas Future Darkens after Shell’s Cambo Exit

Shell’s decision sends a negative signal to other companies, investors and bankers who are thinking about putting money into the aging basin, including by buying assets from majors, industry sources told Reuters.

Shadia Nasralla and Ron Bousso, Reuters

Up until a few days ago, the leadership of British North Sea producer Siccar Point was negotiating the sale of a stake in the promising Cambo oil development to another private equity-backed company, NEO, sources told Reuters.

But on Dec. 2, Royal Dutch Shell, Siccar Point’s partner in the project, pulled its support for Cambo amid a wider public debate about the future of fossil fuels development in the North Sea. The deal with NEO, as well as the future of the 1.9 billion pound (US$2.51 billion) project, were thrown into disarray, according to three industry sources.

Shell’s decision sends a negative signal to other companies, investors and bankers who are thinking about putting money into the aging basin, including by buying assets from majors, industry sources told Reuters.

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