(ATS) After a “thorough review” of the Cambo project, Shell said in a statement Thursday evening that it concluded that “the economic interest in investing in this project was not strong enough at this time.”
The project, which is awaiting a green light from the British government, has become a hobby for environmental NGOs, who are calling for it to be abandoned. Greenpeace organized a demonstration in London in early October that resulted in the arrest of activists.
The Cambo oil field holds more than 800 million barrels of oil equivalent, of which 170 million are expected to be extracted in the first phase of the project. It is 30% owned by Siscar Point Energy, backed by US private equity firm Blackstone and backed by Shell UK.
Shell’s decision “should be a fatal blow to Cambo”, Greenpeace said in a statement, adding that the government “is alone in supporting the oil sector”.
“Denying the permit is the only “viable option,” the NGO said, calling on the UK government to deal with the transition to “green industries of the future” and for any other decision to be a disaster for our climate. Is.
Oxfam, for its part, welcomed an “affirmative” decision, calling on the British government to “veto the production of Cambo and other oil fields in the United Kingdom”.
If he says he is “disappointed” with Shell’s decision, Cisker Point Energy CEO Jonathan Roger assures us that the company will “continue to engage with the British government and stakeholders on Cambo’s future development”, specifying that that she is discussing with her partners. “Check Options”.
“The sudden change from cuts to British oil and gas production would put jobs at risk and make the country dependent on imports,” the company said in a statement.
“This is a business decision that was taken independently by Shell,” the UK Department of Energy said in a statement to AFP.
The Cop26 final agreement, first organized by the United Kingdom in Glasgow, explicitly blamed fossil fuels as the main cause of global warming, calling for an “end of inefficient subsidies” for these energies.
But London, which aims for carbon neutrality in 2050, intends to make oil and gas exploitation in its region less dependent on hydrocarbon imports, which still account for 75% of its energy mix.
“Continued investment in oil and gas in the UK is essential to the country’s energy security,” Shell said in its statement, adding that “the North Sea – and Shell – play a key role in the UK’s energy mix”.
Shell itself has set itself a target of halving its greenhouse gas emissions by 2030 compared to 2016 levels, buying it at its sites and elsewhere for energy.
The oil giant also announced in mid-November that it wanted to move its headquarters to the United Kingdom, sparking outrage in the Netherlands, which would lead to the exit of their biggest company.
Greenpeace lost a lawsuit in October in Scottish court against another UK oil company BP, which sought to revoke the British government’s North Sea drilling permit for the Vorlich project.