Shell pulls out of Cambo oil field development
The company, which has 30% equity in the development off the west coast of Shetland, said it had concluded the economic case for investment was “not strong enough”.
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Shell has announced it is pulling out of the controversial Cambo oil field project.
The company, which has 30% equity in the development off the west coast of Shetland, said it had concluded the economic case for investment was “not strong enough”.
The oil giant said it carried out "comprehensive screening" before reaching a decision to "ensure the best returns for the business".
A spokesperson said: "The economic case for investment in this project is not strong enough at this time, as well as having the potential for delays."
The Cambo oil field is situated approximately 125km (75 miles) to the west of Shetland in water depths of between 1,050m (3,445ft) and 1,100m (3,609ft).
The area was originally licensed for exploration in 2001. It is believed that the field could yield hundreds of millions of barrels of oil.
Drilling could start in 2022 if it is approved by the Oil and Gas Authority. The process could continue for 25 years.