Ithaca Energy acquires full ownership of Cambo oil field from Shell
Ithaca Energy (LON: ITH) has successfully acquired the remaining 30% stake in Cambo from Shell U.K. Limited, taking its ownership to 100% as of 12 September 2023. The deal, focusing on minimal near-term cost exposure, involves payment upon first oil or after any subsequent sale of a working interest in Cambo by Ithaca Energy, conditional upon Final Investment Decision (FID) and development consent from the NSTA.
The Strategic Importance of Cambo for UK’s Energy Sector
Cambo, the second-largest undeveloped oil and gas field in the UK North Sea, is positioned to be a significant asset for Ithaca Energy. The field, located in the West of Shetland region, is known for its low expected operating cost per barrel. With modern, energy-efficient design, including a fully electrification-ready FPSO and zero routine flaring, Cambo is set to be one of the lowest-emission intensity assets in the North Sea. The field’s production is expected to have less than half the CO2 intensity of the average UK field.
Comments from Ithaca Energy’s CEO
Alan Bruce, CEO of Ithaca Energy, stated: “We are pleased to announce the completion of this acquisition, taking our ownership of Cambo to 100%. Following completion, we are now in a stronger position to engage with potential farm-in partners to enable the future progression of the project to Final Investment Decision. As the second largest undeveloped oil and gas discovery in the UK, we believe that Cambo has an important role to play in providing critical energy security to the UK, while reducing the UK’s overall emissions intensity.”
The acquisition of Cambo by Ithaca Energy not only signifies a major step in the company’s growth but also highlights the evolving landscape of the UK’s oil and gas sector, with an increasing focus on sustainable and low-emission energy solutions.