Royal Dutch Shell has withdrawn from the Cambo oil field development, offshore Scotland, citing the weak economics of the project.
The oil and gas major holds a 30% non-operating stake in the UK North Sea field. Siccar Point holds the remaining 70% stake in the offshore field which has been facing opposition from various climate activists.
Shell said that following a detailed assessment, it has come to the conclusion that the economics of the Cambo oil field project were not strong enough. The company revealed that it is also concerned about the delays in the project.
Located 125km northwest of the Shetland Islands, the Cambo oil field is estimated to yield up to 170m barrels of oil equivalent and 53.5bn cubic feet of gas over 25 years.
Siccar Point said that the project continues to be critical to the British economy and energy security.
The Cambo oil field was discovered in 2002. A final investment decision (FID) on the field development is due to be taken in the second half of this year.
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