Scottish Leader Urges UK Government to Reassess Oil and Gas Licenses, Including Shell's Cambo

By Jaime Llinares Taboada

Nicola Sturgeon, the First Minister of Scotland, on Thursday called on the U.K. Government to reassess oil and gas licenses, including Royal Dutch Shell PLC's Cambo oil project, in light of what she described as "the heightened risk [of] the climate emergency."

In a letter to U.K. Prime Minister Boris Johnson, Ms. Sturgeon said his government should reassess licenses already issued but where field development hasn't started yet. This would include Cambo, where Shell holds a 30% stake in partnership with operator Siccar Point Energy Ltd.

In addition, she asked the U.K. Government to enhance the climate conditionality associated with offshore oil and gas production.

Ms. Sturgeon's requests follow the publication of a report from the UN Intergovernmental Panel on Climate Change. The Scottish leader said that, given the urgency of the climate challenge, decisions and investments should support the development of energy alternatives to oil and gas while securing a just transition for the industry.

"The Cambo project is controversial because it would produce up to 170 million barrels of oil from 2025 to 2050, which would be equivalent to running 18 coal-fired power stations for a year," Greenpeace said in a statement.

Ms. Sturgeon's requests could also affect other projects such as Hurricane Energy PLC's Lincoln, Shell's Jackdaw, and BP PLC's Clair South, the environmental organization said.

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

(END) Dow Jones Newswires

August 12, 2021 08:36 ET (12:36 GMT)

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