Siccar Point to review Cambo development options as Shell opts out

Siccar Point Energy E&P will review options for development of Cambo oil and gas field in the West of Shetlands area off the UK following partner Shell UK Ltd.’s decision not to progress its investment, the operator said in a release Dec. 3. Siccar Point operates the project with a 70% interest. Shell UK Ltd. holds 30%.

Discovered in 2002, Cambo field is on the Corona Ridge structural feature 30 km southwest of Rosebank oil field and 50 km north Schiehallion oil field. Siccar Point describes it as a large basement high with sedimentary sequences draped over the top of the structure (OGJ Online, Nov. 8, 2019). Siccar Point envisions developing the field with two subsea drill centers and a dedicated floating production, storage, and offloading vessel.

The project “remains critical to the UK’s energy security and economy,” said Jonathan Roger, chief executive officer of Siccar Point. The company remains confident in the job-creating project aimed to “ease the UK’s transition to a low carbon future through responsibly produced domestic oil instead of becoming even more dependent on imports, with a relatively higher carbon intensity,” he said.

Cambo would help to reduce imports by delivering up to 170 MMboe during its 25-year operational life and provide a further 53.5 bcf of gas—enough to power 1.5 million homes for a year, the company said.

Earlier this year, Cambo underwent a Net Zero Stewardship Expectation review by OGA, which informed the field development plan. The development is expected to be on average 50% lower in emissions from the outset than existing fields through various measures and will be built electrification ready to take power from renewable energy when feasible, the operator said.