Wood says Cambo ‘must go ahead’ as Shell pulls out
Campaigners hailed the decision (pic: Stop Cambo)
UPDATE 3 Dec: Oil veteran Sir Ian Wood says the Cambo oil field “must go ahead” and urged politicians to “reflect carefully” on Shell’s decision to withdraw.
The company was partnering the private equity-backed explorer Siccar Point to develop the Cambo oilfield.
But it said in a statement that it has “concluded the economic case for investment in this project is not strong enough at this time, as well as having the potential for delays.”
Siccar Point said separately: “Shell has taken the decision to not progress its investment at this stage,” while its chief executive Jonathan Roger said: “Cambo remains critical to the UK’s energy security and economy”, suggesting it might seek a new partner.
Mr Roger added: “Whilst we are disappointed at Shell’s change of position … we will continue to engage with the UK Government and wider stakeholders on the future development of Cambo.”
Sir Ian Wood: Shell decision ‘disappointing’
Sir Ian, chairman of the energy transition group ETZ, today said: ”Shell’s decision is disappointing. However, we welcome Siccar Point’s continued commitment to the development and the very good reasons they have given as to why it must go ahead.
“We fervently hope that it does as it will create thousands of jobs across the North East of Scotland both directly and across our supply chain and make a significant contribution to meeting our energy requirements.
“It has been made patently clear for some time we cannot put ourselves in the position of reducing domestic production only to increase carbon heavy imports from overseas.
“This would be entirely counter productive, both environmentally and economically.
“The skills, experience and infrastructure of a world class oil and gas industry will play a crucial role in accelerating energy transition and meeting net zero.
“We must support the industry in meeting this ambition and it is essential the Scottish and UK Governments do too.
“I urge politicians to reflect carefully on their public statements on oil and gas and the impact they have on investment in the industry. We must not create an adverse investment environment at this crucial moment in our energy transition journey. The future prosperity of our region and the country’s ability to meet net zero, depends on it.”
Britain’s oil and gas industry was facing added uncertainty after Shell’s decision on Thursday night to pull out of developing the oilfield off the Shetland Islands.