Siccar Point moves closer towards UK Cambo FID

Private equity-backed Siccar Point Energy has filed a new environmental statement (ES) with UK authorities to develop the Cambo oil and gas field in the North Sea, the company reported on June 7.

Cambo holds 800mn barrels of oil in place and additional volumes of gas, according to Siccar Point. The company, whose investors include Bluewater and Blackstone, submitted a previous ES in October 2019 ahead of taking a final investment decision on Cambo's development. But the project's sanctioning was postponed as a result of the impact of the coronavirus pandemic on oil and gas markets.

Siccar Point has now filed a new ES to comply with revised regulations that came into force this year. It is targeting an FID in the second half of the year.

The development will involve a floating production storage and offloading (FPSO) vessel, connected to two drill centres hosting eight production wells and four water injection wells. An appraisal well drilled in 2018 will also be completed for production.

Cambo's oil will be exported to markets via tanker while its gas will be transported to shore via the West of Shetland pipeline. In its ES, Siccar Point estimates that drilling work at the field will start in 2022. Production is scheduled to begin in 2025 and continue for 25 years. The project's first phase is targeting 170mn barrels of oil.

Siccar Point operates Cambo with a 70% interest, while its partner Shell has 30%. The operator said in its full-year results in May that it planned to "dilute" its share ahead of taking an FID.