Shell reconsiders Cambo exit: press
Shell is reconsidering its recent decision to withdraw from the giant Cambo oil and gas development west of the UK Shetland islands, the BBC reported on March 22.
The oil major said in December that "after comprehensive screening of the proposed Cambo development, we have concluded the economic case for investment in this project is not strong enough at this time, as well as having the potential for delays." The decision was made after a sustained campaign by environmentalists against the project over its climate impact, and left Cambo's operator Siccar Point Energy, without a clear path forward to develop the field.
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Shell has not yet sold its interest in Cambo. But sources told the BBC that while the company's official position had not changed, it did recognise that the economic, political and regulatory environment in the UK had altered significant over the last three months.
The May contract for Brent oil is now trading at over $110/barrel, up from $70/b in December. While primarily oil-focused, Cambo also holds 53.5bn ft3 of natural gas, and UK gas prices have also soared in recent months on the back of recovering demand and global supply constraints. The April contract at the UK NBP gas hub is currently priced at £2.25 ($3.00)/therm.
UK prime minister Boris Johnson has also called for increased North Sea oil and gas production, in order to reduce energy bills for consumers and help the country wean itself off Russian imports.