Shell to sell stake in UK's Cambo oil field

(Bloomberg) – Shell Plc will market its 30% stake in the UK’s Cambo oil field following an agreement with operator Ithaca Energy Plc.

Shell has been seeking to sell out of the Cambo oil field, one of Britain’s largest potential oil and gas developments, since last year. The venture has been on ice since late 2021, when the energy major said the economic case for the project had weakened.

Yet Ithaca has said it sees an opportunity to revive the development after Russia’s invasion of Ukraine prompted a renewed focus on homegrown energy.

Shell may sell a portion of its interest in Cambo or the entire stake, Ithaca said Friday in a statement. The marketing process will run for six months, after which Shell will have the option to offload any remaining portion to Ithaca.

Ithaca also said that it could divest as much as 19.99% of its own working interest if a buyer wanted more than 30%. In any event, Ithaca will retain at least a 50% interest and remain the operator of the asset.