THE Israeli-owned firm that has bought into the Cambo field off Shetland has said the development of the reserves it holds could help boost energy security in the UK and make sense on environmental grounds, in spite of fierce opposition from campaigners.
Ithaca Energy announced on Thursday evening that it had agreed to acquire the firm leading work on the Cambo project, Siccar Point Energy, for up to $1.5 billion (£1.1bn).
Siccar Point provoked an outcry last year when it submitted proposals for the development of the Cambo field with Shell, which put the plans on hold in December.
READ MORE: Shell boss says energy giant is eyeing North Sea gas developments after Cambo U-turn
First Minister Nicola Sturgeon said the development plan should not be approved.
However, Ithaca Energy boss Gilad Myerson told The Herald: “The Cambo field on its own delivers up to 170 million barrels of oil during a 25-year operational life that could materially help reduce the need for the import of more carbon intensive alternatives, which is something that the UK is very much looking to do.”
Environmentalists hammered home their opposition to the prospect of Cambo being developed following the news that Ithaca had clinched the Siccar Point acquisition.
Greenpeace UK’s oil and gas campaigner, Philip Evans, said: "Cambo’s oil won’t improve UK energy security since the kind that can be extracted from this field can’t be processed in UK refineries."
In response, a spokesperson for Aberdeen-based Ithaca Energy said: "It is incorrect that oil from Cambo can't be processed by any UK refinery."
Friends of the Earth Scotland’s Caroline Rance said: “Exploiting Cambo will do nothing for soaring energy bills but it will further risk our collective safety by worsening climate change.”
Mr Myerson noted that under the plans developed by Siccar Point with Shell the carbon intensity of production from Cambo would be around half that of output from the average field.
READ MORE: Ithaca Energy posts $1bn profit after surge in oil and gas prices
Asked about the prospect of the company facing opposition in respect of any plans for Cambo, Mr Myerson said: “We are just learning about the project. We work in a very open and transparent manner and we would welcome debate with any parties that are interested and have a view and really understand their perspective.”
The Siccar Point deal will also allow Ithaca to acquire an interest in the undeveloped Rosebank find off Shetland and in big fields that are in production in the area, including Schiehallion and Mariner.
Ithaca chief executive Alan Bruce noted on Thursday that work on the development of Cambo and Rosebank could result in the creation of thousands of jobs.
The takeover of Siccar Point is the latest in a series of North Sea acquisitions made by Ithaca since it was bought by Israel’s Delek Group in a £1bn deal in 2017.
Mr Myerson noted the company has invested heavily in maximising the potential of the acreage it has amassed and sees lots to go for in the North Sea.
“We have an unwavering commitment to the UK North Sea. We are here for the long term,” he said.
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