Siccar Point Energy E&P Ltd and its joint venture partner, Shell UK, have announced the deferral of the planned sanction date for the Cambo project to 2021, “in light of the unprecedented worldwide macroeconomic dislocation resulting from Covid-19”.
This will now be targeted for the second half of next year, subject to approval of the necessary license extension, according to Siccar Point, which said it will continue to work with existing key supply chain partners over the coming period to ready the project for Final Investment Decision (FID).
Siccar Point and Shell UK had been planning to bring the project to a FID in the third quarter of this year. Cambo is one of the largest undeveloped fields in the UK Continental Shelf and will open-up other prospects for potential development in the area, according to Siccar Point.
“Cambo remains an extremely attractive development with compelling economics,” Jonathan Roger, CEO of Siccar Point, said in a company statement.
“However, given the uncertainty of the global situation, including whether any people, goods and services can be mobilized in OECD countries, it makes sense to hold-off final approval until some normality returns to the market and a clear and robust path forward can again be established,” he added.
“In the meantime, Siccar Point is very well positioned with respect to this downturn having both substantial cash balances and very full hedging for 2020 and 2021,” Roger continued.
The Cambo field, which was discovered in 2002, is located 77 miles northwest of the Shetland Islands in a water depth of 3,608 feet.
Siccar Point describes itself as a full cycle production, development and exploration company focused on “high quality, low cost, long life” assets on the UKCS. The company has assets in its portfolio that will produce through to the 2050s, according to its website.
To contact the author, email andreas.exarheas@rigzone.com
No comments:
Post a Comment