Shell is reportedly relooking into a recent decision to withdraw from the Cambo oil field development, offshore Scotland.
The change in the decision has been driven by the volatility in oil prices resulting from concerns that Russian oil will be either rejected or stopped.
Last December, Shell said that it had pulled out from the Cambo oil field development due to the then weak economics of the project. During that time, crude oil was priced under US$70 a barrel, which has now been consistently over US$100 following Russia’s war on Ukraine.
Shell has a non-operating stake of 30% in the North Sea field, located 125km northwest of the Shetland Islands. Siccar Point owns the remaining stake of 70% in the Cambo field, which has been opposed by various climate activists.
The Cambo field is estimated to produce up to 170m barrels of oil equivalent and 53.5bn cubic feet of gas over 25 years. Siccar Point had previously stated that the project remains vital to the British economy and energy security.
The wish to cut down Europe’s dependence on Russian exports has also made the British government seek to expedite investment in domestic fossil fuels. Shell is yet to sell its stake in the Cambo oil field development.
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