The Cambo oilfield off the Shetland Islands could now be developed after a $1.5bn (£1.1bn) takeover of the owner of the controversial site.
Siccar Point Energy, which put the project on “pause” when its partner Shell pulled out late last year after fierce opposition from environmental activists, has been acquired by Ithaca Energy.
Ithaca Energy said Cambo and the nearby Rosebank sites were “two of the largest undeveloped and most strategically important discoveries in the UK North Sea”.
Alan Bruce, the chief executive of Ithaca Energy, said: “The development of the Cambo and Rosebank fields is a huge opportunity to not only help secure the UK’s energy future for at least another quarter of a century, but also to create thousands of direct and indirect jobs in the process.”
Shell pulled out of the development of the site in December saying the economic case for investment was “not strong enough”.
However, last month a report claimed the energy company was reviewing its decision after the price of oil rocketed, making the project more financially viable.
A spokesperson for Shell, which owns a 30% stake in Cambo, said it had nothing to add to its statement in December, when it withdrew from the project.
The war in Ukraine has put a spotlight on the need for the UK to reduce its reliance on foreign energy sources, particularly from Russia.
On Thursday the UK government released its energy strategy in full, which included a new licensing round for oil and gas projects in the North Sea.
The Cambo site has not yet received final approval from UK regulators.
Ithaca Energy said: “The Cambo field on its own is anticipated to deliver up to 170m barrels of oil equivalent during its 25-year operational life, materially helping to reduce the need for the import of more carbon intensive alternatives and increasing the UK’s energy independence through the energy transition.
“With a final investment decision expected on both fields next year, they represent a near-term opportunity to enhance the local and wider UK economy through the creation of a significant number of employment opportunities directly and across the supply chain.”
The UK government said its commitment to more North Sea projects recognised “the importance of these fuels to the transition and to energy security”.
