With the acquisition, Ithaca will increase its stake in Cambo to 100% and will obtain full control over the progression of the future development of the field, which is the second-largest undeveloped oil and gas discovery in the UK North Sea
UK-based oil and gas company Ithaca Energy has agreed to acquire the remaining 30% stake in the Cambo oil field from Shell UK, subject to regulatory approval.
Ithaca will acquire the remaining 30% stake in Cambo oil field. (Credit: Zachary Theodore on Unsplash)
In May this year, Ithaca signed an agreement with Shell UK, which provides an option for Shell to sell any remaining portion of its stake to Ithaca Energy, after a six-month marketing process.
Under the terms of the current agreement, Ithaca is not required to pay the potential transaction price until it achieves first oil or receives proceeds of any sale of interest in the Cambo field.
Also, the transaction is subject to Ithaca proceeding with a final investment decision (FID) or securing the development consent from the North Sea Transition Authority (NSTA).
With the acquisition, Ithaca will increase its stake in Cambo to 100% and will obtain full control over the progression of the future development of the field.
Ithaca Energy chief executive officer Alan Bruce said: “We are pleased to conclude the marketing process with Shell and to take full ownership of the Cambo development.
“Our primary focus continues to be the delivery of our BUY, BUILD and BOOST strategy, including the future development of Cambo, subject to fiscal conditions.
“We believe that Cambo has an important role to play in providing energy security and economic benefit to the UK, while reducing overall emissions intensity.”
Discovered in 2002, the Cambo oil field is located in blocks 204/10a ALL, 204/5a ALL, and 204/9a ALL, at around 3,582ft water depth, in the West of Shetland region of the UK North Sea.
It is the second-largest undeveloped oil and gas discovery in the UK North Sea and provides Ithaca with long-term production growth at a less operating cost per barrel.
The field is expected to produce at less than half the CO2 intensity of the average UK field, building on its advanced FPSO design.
Cambo’s advanced energy-effective FPSO design and potential for electrification will make it one of the lowest-emission intensity assets in the North Sea, said Ithaca.
