Shell announced on Thursday that it will not continue investing in the Cambodian oil field.
Shell owns 30% of Cambo Oil Field in the North Sea of the United Kingdom, with Sicar Point Energy owning the remaining 70%.
Sikar expressed his dissatisfaction with Shell’s exit and said he should reconsider his choice for Kambo.
The reason for Shell’s withdrawal from the project is the lack of delay capacity and economic strength.
It is estimated that Cambo will produce 175 million barrels of oil in the first phase. Cambo has attracted the attention of environmental groups opposed to the development.
“After a thorough investigation into the proposed Cambo development, we have concluded that the economic investment in this project is not strong enough and has the potential to delay,” a spokesman for Shell said on Thursday.
However, Shell said he still believes in the UK’s North Sea, saying “continued investment in the UK’s oil and gas sector is” critical to the country’s energy security. “
Anti-Cambo development campaigners hailed Shell’s move as “the beginning of the end for all new oil and gas projects,” one such Scottish campaigner.
Oil and gas regulator OGUK warns that Britain is still relying on new oil and gas projects.
“This is a business decision between the partners but it does not change the fact that the UK will continue to seek new oil and gas projects if we want to increase supply, import and support,” said Jenny Stinging, OGUK’s external communications director.
By Julian Giger for Oilprice.com
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