UK Regulator Extends License for Shell's Cambo Field

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 [e-mail]; @JaimeLlinaresT

(END) Dow Jones Newswires

March 30, 2022 08:39 ET (12:39 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.