Shell has agreed to buy minority stakes from private equity-backed Siccar Point Energy in three licences in the West of Shetland area off the UK.
Shell has agreed to buy minority stakes from private equity-backed Siccar Point Energy in three licences in the West of Shetland area off the UK.
Under the deal Shell will acquire a 30 per cent non-operated working interest in UKCS licences P1028 and P1189 (incorporating the Cambo discovery) and a 22.5 per cent non-operated working interest in P1830 (including the Blackrock prospect), both located 125 km north-west of the Shetland Islands.
Shell will acquire a 30 per cent non-operated working interest in UKCS licences P1028 and P1189 (incorporating the Cambo discovery) and a 22.5 per cent non-operated working interest in P1830 (including the Blackrock prospect), both located 125 km north-west of the Shetland Islands.
The deal remains subject to customary regulatory and partner consents.
Jonathan Roger, CEO at Siccar Point, said “We are pleased that Shell has agreed to join us as a partner in this exciting project. Shell brings a wealth of relevant expertise and their interest is testament to the potential of the Greater Cambo Area and the quality of the work carried out by the Siccar Point team”.
A final appraisal well is planned on the Cambo discovery in Q2 2018 and an exploration well is planned on the Blackrock prospect in 2019. Details of the consideration are not being disclosed but the key elements are a cost carry contribution on both the wells and any subsequently approved development on Cambo.
Source: Pipeline ME
