Shell Sold North Sea Field Despite Its Prospects
Shell sold the Cambo field project in the North Sea to Britain’s Ithaca Energy.
The Kambo field is the second largest untapped oil and gas field in the UK North Sea. However, Shell believes that the time has come to part with such an asset by selling it to Britain’s Ithaca Energy.
Ithaca did not disclose the value of the transaction, only confirming that it now owns 100% of Cambo field.
The company noted that the Kambo field provides it with the opportunity to increase production in the long term, and at low estimated operating costs per barrel. Moreover, Ithaca claims that production at this location will produce almost 2 times less CO2 than typical fields in the UK.
Why did Shell abandon an asset where there are large reserves, and where production can also be carried out with lower environmental costs? Perhaps the company really seeks to abandon hydrocarbon projects for the sake of the ESG agenda. And maybe also because it’s more profitable to work in other regions of the world today. Especially where the authorities do not require you to pay taxes on excess profits.
