UK Regulator Extends License for Shell's Cambo Field
March 30 2022 - 8:54AM
Dow Jones News
By Jaime Llinares Taboada
The U.K.'s oil-and-gas regulator has granted Siccar Point Energy
Ltd. and Shell PLC an extension to the license for the Cambo
oil-and-gas field in the North Sea.
A spokesperson for Shell said that this extension will allow the
companies to consider future options for Cambo. The license was due
to expire on Thursday.
"At this time there is no change to our position of December
2021, but the extension to the licenses will allow time to evaluate
all potential future options for the project," the spokesperson for
Shell said.
Back in December, Shell said that the economic case for
investment in Cambo wasn't strong enough.
Cambo is operated and 70%-owned by Siccar Point, a company
backed by private equity firms Blackstone and Blue Water Energy.
Shell owns the remaining 30% stake.
According to Siccar Point, Cambo could produce up to 170 million
barrels of oil equivalent during 25 years, in addition to 53.5
billion cubic feet of gas.
"In granting this licence extension, the government have
highlighted yet another weakness in their supposed 'climate
checkpoint' regime for new oil and gas--they will just sidestep it
entirely when it's inconvenient," Greenpeace U.K. said.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
March 30, 2022 08:39 ET (12:39 GMT)
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