Ithaca Energy agreed to acquire Shell’s 30% stake to take full control of the undeveloped Cambo oil and gas field in the West of Shetland region of the British North Sea, the smaller oil producer said on Tuesday.
In late 2021, Shell pulled its support for Cambo citing economic reasons, after the project became a lightning rod for climate activists seeking to halt the development of new oil and gas resources.
The acquisition, pending regulatory approval, has “minimal near-term cost exposure” which will be paid if and once the field starts producing oil or if Ithaca sells a stake, Ithaca said in a statement.
This would amount to around $77.85 million, an Ithaca spokesperson said on Tuesday.
In May, Ithaca said it had signed an agreement with Shell to market the oil major’s 30% stake in Cambo, with a potential for Ithaca to increase its ownership if no other sale occurs.
At the time, Ithaca said it would pay $1.50 per barrel of oil equivalent (boe) of so-called P50 resources in Cambo, which stood at 173 million boe, according to the latest development plan. P50 is a type of measurement used for the size of undeveloped oil and gas fields.
Ithaca listed on the London Stock Exchange last November and has been critical of a windfall tax on oil and gas producers in the British North Sea that was introduced last year.
It also owns a 20% stake in the Equinor-operated Rosebank field in the British North Sea, for which a final investment decision is outstanding.