Cambo operator awaits decision on extension

Cambo operator awaits decision on extension

London, 23 March (Argus) — Parties connected to the UK's controversial Cambo oil and gas field west of Shetlands are waiting to see if a key deadline date for the submission of a field development plan can be extended beyond 31 March.

Private equity-backed independent Siccar point Energy, which operates the Cambo licences with a 70pc interest, remains "hopeful" it can achieve an extension, Argus understands. Meanwhile, Shell — still a minority partner in the field thanks to its 30pc stake — is keeping silent about what it intends to do with its share and whether it has changed its mind about pulling out of the project.

The second term of the P1028 and P1189 licences, which cover the location where the Cambo field is located, is scheduled to end on 31 March. This period is significant because the second term is when a development plan for any project is normally submitted and approved, and the term expires unless the regulator, the North Sea Transition Authority, formerly the Oil and Gas Authority, has approved a development plan.

Licence terms can be extended in certain circumstances and Siccar Point is understood to have applied for such an extension. A source close to Siccar Point