After a “comprehensive screening” of the Cambo sector, Shell “concluded that the economic situation to invest in this project is not strong enough at this time, nor is it likely to be delayed,” the company said. know in a statement.
The privately-backed Siccar Point, which owns a majority stake in the sector, confirmed in a separate statement that “Shell has decided not to continue investing at this stage.”
“Cambo remains critical to the UK economy and energy security,” Siccar Point CEO Jonathan Roger said in a statement.
The UK government has also responded to the IEA report by saying that energy security is important. During the COP26 climate conference held under British auspices last month, Britain also refused to join a coalition of countries committed to preventing new oil and gas developments on their territory.
“While we are disappointed at Shell’s change of heart … we will continue to engage with the UK Government and broader stakeholders on the future development of Cambo,” he said.
Friends of Earth, an activist group that won a case against Shell in the Netherlands this year welcomed the move.
The future of the project is now in serious doubt – rightly so. New oil fields are not necessary in times of climate crisis, the group said on Twitter.
Shell owns 30% of the project, while Siccar Point, the company that runs it, holds the remaining 70%. According to Siccar Point, the field could produce up to 170 million barrels of oil and 53.5 billion cubic feet of gas over 25 years.
It is not clear whether this field can be developed without shell support.
Shell faced another setback for its plans in Britain’s North Sea in October when a regulator rejected plans to develop the Jackdaw gas field after reviewing its environmental claims. company, industry sources said.
