Ithaca, Shell draw up divestment terms for Cambo project west of Shetland

May 5, 2023
Ithaca Energy has signed a marketing agreement with Shell UK concerning the latter’s 30% stake in the Cambo oil and gas field west of Shetland.

Offshore staff

ABERDEEN, UK  Ithaca Energy has signed a marketing agreement with Shell UK concerning the latter’s 30% stake in the Cambo oil and gas field west of Shetland.

For the development, operator Ithaca plans a fully electrification ready FPSO based on Sevan’s circular hull design with zero routine flaring.

Under the agreement, Shell would market and sell either part of its 30% interest or divest it entirely. Alternatively, it would sell any remaining portion of its stake not taken by another party to Ithaca.

Or, if a potential buyer wanted a greater share of equity, Ithaca would be able to sell up to 19.99% of its own interest in the project.

The marketing process runs for six months from the date of signing the agreement.

Ithaca CEO Alan Bruce said Cambo is “the second largest undeveloped field in the UK Continental Shelf and a key asset in helping maintain the UK's future energy security. Securing a new owner for Shell's stake is an important step in Ithaca Energy progressing to final investment decision…

“Ithaca Energy remains committed to investing in the UK North Sea; however, the impact of the [UK government’s] amended Energy Profit Levy and the fiscal instability it has created continues to constrain our ability to invest. We are actively engaging, in a constructive manner, with the UK government in pursuit of the fiscal stability required to make critical investment decisions that will support the UK's long-term energy security."

05.05.2023

Courtesy Var Energi's "Interim Report Fourth quarter 2023" presentation
Courtesy Valeura Energy Inc. Corporate Overview (presentation), February 2024