Campaigners say licence extension for Cambo oil field west of Shetland is keeping controversial plan on ‘life support’
UK authorities have granted the Cambo oil field a licence extension – with environmental campaigners claiming the move keeps the controversial project on “life support”.
The licence for developing the area, which lies to the west of Shetland, had been due to expire today.
But a spokeswoman for energy giant Shell, which co-owns the field with Sic car Point Energy,confirmed yesterday that the extension has been granted.
Shell withdrew from the development in December and it stressed there is“no change to our position”.
But the company said the extension gives time to“evaluateall potential future options ”.
The spokeswoman said: “The North sea transition authority has awarded Siccar Point Energy and Shell UK an extension to the underlying licences containing the Cambo field which were due to expire.
“At this time there is no change to our position of December 2021, but the extension to the licences will allow time to evaluateall potential future options for the project.”
In December, Shell, which has 30 per cent equity in the proposed development, said it had concluded the economic case for investment was “not strong enough”. That decision came after the scottish government spoke out against developing the field, with First Minister Ni cola Sturgeon saying in November: “I don’t think that Cambo should get the green light.”
Since then fears over the future of Russian oil have sent prices soaring, at the same time as consumers in the UK are facing rocketing energy bills.
Environmental campaigners at Friends of the Earth Scotland argue the two-year licence extension is “simply dragging out the inevitable rejection of Cambo”.
The group’s Caroline Rance said: “The UK government is trying to keep this doomed oil field on life support but they are simply dragging out the inevitable rejection of Cambo and the transition away from fossil fuels.”
The Stop Cambo campaign group said: “Cambo was a bad idea in 2021. It’s a terrible idea now. Cambo won’t lower bills but it does put us on a path to wreck the climate.”
It tweeted: “The majority of Brits want investment in affordable, renewable energy. They don’t want millions wasted on a field like Cambo.”