Offshore staff
ABERDEEN, UK – Siccar Point Energy E&P Ltd. and joint venture partner Shell UK have deferred the planned sanction date for the Cambo project to 2021 in light of the unprecedented worldwide macroeconomic dislocation resulting from Covid-19.
The Cambo field, 125 km (78 mi) northwest of the Shetland Islands and in a water depth of 1,100 m (3,609 ft), was discovered in 2002. Four appraisal wells were drilled up to 2012 and a final appraisal well was drilled and flow tested by Siccar Point during the summer of 2018. It is one of the largest undeveloped fields in the UKCS and will open-up other prospects for potential development in the area, the company said.
The companies had been planning to bring the project to a final investment decision (FID) in 3Q 2020. This will now be targeted for the second half of 2021, subject to approval of the necessary license extension, a request for which has been submitted to the Oil and Gas Authority.
The company said it will continue to work with existing key supply chain partners over the coming period to ready the project for FID next year.
Jonathan Roger, CEO of Siccar Point, said: “Cambo remains an extremely attractive development with compelling economics. However, given the uncertainty of the global situation, including whether any people, goods and services can be mobilized in OECD countries, it makes sense to hold-off final approval until some normality returns to the market and a clear and robust path forward can again be established…
“During the period of delay, we will continue to mature key aspects of the project to facilitate a swift and efficient ramp-up when market conditions stabilize.”
03/30/2020
