A police officer speaks to one of the campaigners from Greenpeace outside Downing Street, London, during a protest against the Cambo oil field off the west coast of Shetland
(Picture: PA)Controversial plans to develop the Cambo oil field in the North Sea have moved a step closer after the company behind the plans was bought in a $1.5 billion (£1.2 billion) deal.
Siccar Point Energy, which part-owns the licence to the field, is being bought by Ithaca Energy, part of the Israeli energy conglomerate Delek Group.
Ithaca’s involvement gives it an opportunity to “develop fields that will contribute significantly to the UK’s energy security”, the company said.
Alan Bruce, CEO of Ithaca Energy, said: “The acquisition doubles our recoverable resources and means that we now have interests in a significant portion of the largest UK Continental Shelf fields.
“This includes interests in two of the UK’s most strategically important and near-term developments, which will enable us to play an increasing role in securing domestic energy supply for the UK.”
Ithaca’s acquisition of Siccar Point Energy comes just over a week after UK authorities granted an extension to the licence for the Cambo field. However, the project does not yet have the final approval needed for drilling to start.
The plans have come under fierce opposition from campaigners who say Britain should focus on renewable sources of energy, rather than continuing to rely on fossil fuels.
The Scottish government has also voiced its opposition to the project. First Minister Nicola Sturgeon said in November: “I don’t think that Cambo should get the green light.”
Siccar’s partner Shell pulled out of the development off the west coast of Shetland in December, saying it had concluded the economic case for investment was “not strong enough”, although it retained its licence.
Attitudes to oil and gas projects have shifted since then, with the government including North Sea projects in its Energy Security Strategy published this week.
Despite some reports suggesting Shell was reconsidering the project, the company stressed last month that there was “no change to our position”.
Siccar Point Energy’s CEO Jonathan Roger said: “[The deal] will ensure the UK continues to deliver reliable UK oil and gas production for powering homes and businesses and manufacturing essential products and maintaining energy security during the planned energy transition.”
The Cambo field is expected to produce 170 million barrels of oil equivalent over 25 years.
