UK extends Cambo field licences for two years

Market: Crude oil, Natural gas
30/03/22

Siccar Point Energy said today it has received an extension for the licences that cover its controversial Cambo oil and gas field in the UK offshore.

The P1028 and P1189 licences were to expire on 31 March. The extension, granted by the North Sea Transition Authority (formerly the Oil and Gas Authority), means operator Siccar Point will have an additional two years to submit, and gain approval, for any plan to develop the field.

The private equity-backed independent said it continues to work with its partner Shell and the UK government "to map out the next steps on Cambo." For its part, Shell said today there is no change to its position in December, when it said it had "concluded the economic case for investment in this project is not enough at this time". But it said "the extension to the licenses will allow time to evaluate all potential future options for the project."

The Cambo field — estimated to contain 170mn bl of recoverable oil — became a focus for protests in the run-up to and after the Cop 26 UN climate talks last year, partly because of its location in the relatively underexplored and underdeveloped west of Shetland region. Environmental group Greenpeace singled out Cambo in its campaign to pressure the UK government into blocking new oil and gas projects.

By Jon Mainwaring

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