The British oil and gas regulator has extended by two years the license for the Cambo oil field prospect in the North Sea which is owned by Shell Plc and Siccar Point, Shell said on March 30.
“The North Sea Transition Authority has awarded Siccar Point Energy and Shell UK an extension to the underlying licenses containing the Cambo Field which were due to expire tomorrow,” Shell said in a statement.
Shell last December announced it had scrapped plans to develop the field, which had become a lightning rod for climate activists seeking to halt the development of new oil and gas resources.
But following Russia’s invasion of Ukraine and the greater focus on European energy security, there have been growing calls to develop new oil and gas fields in the North Sea.
Shell said its position hasn't changed, but that “the extension to the licenses will allow time to evaluate all potential future options for the project.”
Siccar Point confirmed the two-year extension, adding that the private equity-backed company “continues to work with its co-venturer Shell and the U.K. government to map out the next steps on Cambo.”
Shell owns 30% in the project, while Siccar Point, which operates it, holds the remaining 70%. The field could produce up to 170 million boe and 53.5 Bcf of gas over 25 years, according to Siccar Point.
Recommended Reading
Silver Linings in Biden’s LNG Policy
2024-03-12 - In the near term, the pause on new non-FTA approvals could lift some pressure of an already strained supply chain, lower both equipment and labor expenses and ease some cost inflation.
White House Open to Ending LNG Export Pause in Push for Ukraine Aid, Sources Say
2024-04-02 - Reversing the pause could be tolerable to the White House in order to advance Ukraine aid, in part because the pause has no bearing on near-term LNG exports, the White House sources said.
Tinker Associates CEO on Why US Won’t Lead on Oil, Gas
2024-02-13 - The U.S. will not lead crude oil and natural gas production as the shale curve flattens, Tinker Energy Associates CEO Scott Tinker told Hart Energy on the sidelines of NAPE in Houston.
Commentary: Fact-checking an LNG Denier
2024-03-10 - Tampa, Florida, U.S. Rep. Kathy Castor blamed domestic natural gas producers for her constituents’ higher electricity bills in 2023. Here’s the truth, according to Hart Energy's Nissa Darbonne.
Dispatch from the LNG Front: Development Not ‘Paused’ so much as Slowed
2024-04-04 - Analysts: Low prices may stall upcoming gas gathering projects that are needed for an expected boom.