Deal with Shell

Ithaca takes full ownership of Cambo oil & gas field

Ithaca Energy
Ithaca is acquiring the remaining Cambo stake

Ithaca Group is acquiring the remaining 30% stake in the Cambo oil and gas field from Shell to give it 100% ownership.

The acquisition, which has minimal near-term cost exposure, will provide Ithaca Energy with full control over the progression of the future development of Cambo, the second largest undeveloped discovery in the UK North Sea.

Alan Bruce, chief executive at Ithaca Energy, commented: “We are pleased to conclude the marketing process with Shell and to take full ownership of the Cambo development.

“Our primary focus continues to be the delivery of our BUY, BUILD and BOOST strategy, including the future development of Cambo, subject to fiscal conditions. We believe that Cambo has an important role to play in providing energy security and economic benefit to the UK, while reducing overall emissions intensity.”

Cambo has been the subject of opposition from climate activists and the Scottish Greens, while the SNP also advised that it should not proceed.

Stop Cambo
Cambo is a target for activists

The company says development provides it with long term production growth at a low expected unit operating cost per barrel.

With its modern, energy efficient design and potential for electrification, Cambo could be one of the lowest-emission intensity assets in the North Sea.

The field is expected to produce at less than half the CO2 intensity than the average UK field, enabled by the FPSO design which includes features such as being fully electrification ready (subject to grid connection availability), zero routine flaring and the Sevan FPSO hull design reducing power demand.

Offshore report

Offshore energy could see a 50% rise in its workforce from over 150,000 to 225,000 by the end of the decade with new renewable jobs outnumbering oil and gas roles. 

However, a new Powering up the Workforce report also warns that if the rate of investment and activity in renewables in the UK does not increase significantly, at a time when oil and gas activities are in rapid decline, then up to 95,000 potential offshore energy jobs will be at risk.

Retaining the offshore oil and gas supply chain, its workforce and associated skills over the next five years will be crucial, it says. This is because there continues to be limited capacity for the UK offshore renewables sector to host and accommodate the quantity of skilled oil and gas workers impacted by the predicted decline in the hydrocarbon sector until later this decade.

Professor Paul de Leeuw, Director of the Robert Gordon University Energy Transition Institute, said: “This report presents a range of workforce outcomes that could materialise over the coming years. There is a huge prize up for grabs and we want to equip decision makers – whether in government, industry or in individual businesses – with new insight to convert those opportunities into reality.”

“With investment at risk and wind projects facing delays, the findings underline the present-day situation for the UK offshore energy industry and its stakeholders.

“The big prize of a significant jobs gain is still within our collective reach. Inaction or simply slow progress will mean that offshore energy job numbers overall could drop by 15% to 130,000 by 2030, making the path towards net zero even harder to negotiate.”

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