Evening Telegraph (First Edition)
Cambo oil project ‘paused’ by Siccar
SICCAR Point Energy has said it is “pausing” the Cambo oil project in the west of Shetland after Shell decided to pull out of the controversial development.
Shell, which owns 30%, sent shockwaves through the industry last week when it decided to not to continue investment, raising huge doubt over its future.
In a statement, Siccar Point Energy, which operates Cambo and holds the remaining 70%, said it cannot now proceed on the originally planned timescale.
Chief executive Jonathan
Roger said: “Following Shell’s announcement last week, we are in a position where the Cambo project cannot progress on the originally planned timescale. We are pausing the development while we evaluate next steps.
“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, while supporting a just transition.”
It comes as the licence for the Cambo project is due to expire in March.
Shell cited economic reasons and the potential for delays as part of its reasoning for leaving the project, while environmental campaigners claimed it was a “death blow” to the project.
The project is initially targeting 175 million barrels, but subsequent phases would go after additional resources, according to the phase one environmental statement.
It has been a major battleground in the run up to and during the COP26 climate conference.
The GMB union said the move was damaging for security of energy supply, citing Oil and Gas UK figures that the UK has forked out £18 billion for imported fuel in the first six months of 2021.