[UK] Cambo

Post Reply
escveritas
Site Admin
Posts: 3181
Joined: Sat Aug 29, 2020 5:40 am
Location: Singapore
Contact:
Singapore

[UK] Cambo

Unread post by escveritas »

THE CAMBO FIELD

Image

The Cambo field is located approximately 80 miles west of the Shetland Islands, approximately 20 miles south from Rosebank, and approximately 20 miles north from Schiehallion. Discovered in 2002, the field is a large basement high with sedimentary sequences atop the structure and sits on the Corona Ridge structural feature. Ithaca Energy holds a 70.0% operated interest in the field, acquired through its acquisition of Siccar Point Energy in June 2022, with Shell holding a 30.0% non-operated interest.

Cambo will be developed using a purpose-built Sevan FPSO. Modern equipment designed to operate without the need for routine flaring or venting of hydrocarbons will be used to reduce emissions. When production commences, the field is expected to produce less than half of the amount of CO2 for each barrel produced than the average UK field. The development will be built electrification-ready.
escveritas
Site Admin
Posts: 3181
Joined: Sat Aug 29, 2020 5:40 am
Location: Singapore
Contact:
Singapore

Re: [UK] Cambo

Unread post by escveritas »

Location
  • The Cambo oil field lies within UKCS Blocks 204/4a, 204/5a, 204/9a and 204/10a, in the West of Shetland region.
  • The proposed Development footprint is situated at water depths of between 1,050 m in the southeast to 1,100 m in the northwest within the Faroe-Shetland Channel, with the Gas Export
  • Pipeline route situated at water depths of 1,085 m to 190 m.
  • The nearest coast line is the Shetland Islands, located approximately 125 km to the east.
  • The proposed Development lies adjacent to the UK/Faroe Island transboundary line.
Proposed activities
  • The proposed activities relate to a new project.
  • The concept for the Cambo Project is for a dedicated, moored Floating Production, Storage and Offloading (FPSO) vessel to produce hydrocarbons from two drill centres. Oil will be exported via shuttle tanker. Gas will be exported via a gas export pipeline extending 70 km to the southeast of the Cambo field, and will terminate at the West of Shetland Pipeline (WOSPS) Pipeline End Manifold (PLEM) tie-in.
  • It is proposed that eight new production wells and four water injection wells will be drilled in the Cambo field. Additionally, the Cambo 204/10a-5Y well, drilled as an appraisal well in 2018, will also be completed for production.
Timeline
  • The Cambo field is expected to produce oil and gas for approximately 25 years.
  • Offshore development activities are currently due to commence at the Cambo field in 2021,with first drilling operation currently planned in 2022. First oil is expected in 2025.
escveritas
Site Admin
Posts: 3181
Joined: Sat Aug 29, 2020 5:40 am
Location: Singapore
Contact:
Singapore

Re: [UK] Cambo

Unread post by escveritas »

Sevan SSP and Sembcorp Marine continue engineering work on Siccar Point Cambo
7 May 2021

Image

Sevan SSP and its parent company, Sembcorp Marine, are continuing with the pre-FID engineering work for Siccar Point Energy’s Cambo FPSO in anticipation of development sanction on the project in late 2021. The group has been working with Siccar Point since 2019 to develop an innovative cylindrical FPSO for the Cambo field.

This unique design-and-build project is based on Sevan’s proprietary geostationary circular hull, a proven design that has excellent sea-keeping and motion characteristics with enhanced stability and operational performance for safe operation in challenging conditions and harsh environments.

The design allows for modularised fabrication and assembly and scalability, and eliminates the need for a costly mooring system, making it a cost-efficient alternative to traditional floating barge solutions.

The favourable motions of the Sevan hull, in particular in mid- to deepwater harsh environments, makes it suitable for deployment on the rough seas of the Cambo field. Located in the Corona Ridge area outside of the Shetland Islands at a water depth of 1,100 m, Cambo contains over 800 million barrels of oil in place.

The Sevan solution is not limited to offshore oil applications and can be adapted to an array of gas and renewable energy solutions. The group continues to receive enquiries relating to Sevan’s circular hull solutions from existing and potential customers including those in the areas of gas and renewable energy involving digitalisation, carbon capture and electrification-related solutions.
escveritas
Site Admin
Posts: 3181
Joined: Sat Aug 29, 2020 5:40 am
Location: Singapore
Contact:
Singapore

Re: [UK] Cambo

Unread post by escveritas »

ITHACA ENERGY ANNOUNCES AGREEMENT WITH SHELL TO MARKET WORKING INTERESTS IN CAMBO

5 May 2023

Ithaca Energy plc (“Ithaca Energy” or the “Group”)

Agreement with Shell to market working interests in Cambo

Ithaca Energy (LON: ITH) is pleased to announce it has signed an agreement with Shell U.K. Limited (“Shell”) which defines a marketing process for Shell’s 30% working interest in Cambo.

The Cambo field is the second largest undeveloped oil and gas discovery in the UK North Sea, located in the West of Shetland region. The development provides Ithaca Energy with long term production growth at a low expected unit operating cost per barrel. With its modern, energy efficient design and potential for electrification, Cambo could be one of the lowest-emission intensity assets in the North Sea. The field is expected to produce at less than half the CO2 intensity than the average UK field, enabled by the FPSO design which includes features such as being fully electrification ready (subje
    ct to grid connection availability), zero routine flaring and the Sevan FPSO hull design reducing power demand.

    To enable the successful progression of the project towards final investment decision (“FID”), a number of outcomes are possible under the agreement:
    • For Shell to market and sell a portion of its 30% working interest in Cambo, or the entire 30% interest;
    • In the event that Shell does not sell its entire 30% working interest, for Shell to sell any remaining portion of its own stake, which is not sold to a third party, to Ithaca Energy. The details of this agreement are outlined below.
    • For Shell to sell its entire 30% working interest and, if a potential buyer wanted a greater share of equity, for Ithaca Energy to sell up to 19.99% of Ithaca Energy’s working interest in Cambo.
    The agreement entered into between Shell and Ithaca Energy dated 4 May, provides an option for Shell to sell any remaining portion of its own stake (“Option Stake”), which is not sold to a third party to Ithaca Energy, following the conclusion of the marketing process, that will run six months from the date of signing the agreement. In parallel, Ithaca Energy has an option to acquire the Option Stake, in each case subject to regulatory approval.

    The transaction structure provides upfront certainty to Ithaca Energy, with very limited near-term cash outflow, in the event that either Ithaca Energy or Shell exercise their options in relation to the Option Stake when the marketing process concludes.
    • Ithaca Energy has entered into the option to acquire the Option Stake at a value equating to $1.50 per boe of the P50 resource volumes being acquired pursuant to the development plan:
      • Should development consent be granted by the North Sea Transition Authority (“NSTA”) on or before 30th June 2024, the P50 resource volume reference will be as per the latest field development plan submitted to the NSTA (approximately 173 mmboe gross)
      • Should development consent be granted by the NSTA after 30th June 2024, the P50 resource volume reference will be determined by the field development plan submitted to the NSTA at the time of development consent
    • The potential transaction price is subject to a number of customary completion adjustments, which are expected to be immaterial to Ithaca Energy.
    • Ithaca Energy will not be required to pay the vast majority of the potential transaction price until the earlier of: (i) receipt of proceeds of any subsequent sale of a working interest in Cambo by Ithaca Energy; and (ii) first oil.
    • With the exception of minor payments at completion, or if Ithaca Energy subsequently sells a portion of its working interest in the Cambo field, no amounts will be payable should Ithaca Energy decide not to proceed with FID and/or if the NSTA do not provide development consent.
    In all sale scenarios, Ithaca Energy would retain at least a 50% working interest in Cambo and will remain the operator of the asset.

    Alan Bruce, Chief Executive Officer, Ithaca Energy, commented: “Our agreement with Shell represents a meaningful step towards the development of Cambo, the second largest undeveloped field in the UKCS and a key asset in helping maintain the UK’s future energy security. Securing a new owner for Shell’s stake is an important step in Ithaca Energy progressing to Final Investment Decision. Ithaca Energy’s primary strategic focus is to maximise sustainable shareholder returns through the delivery of our BUY, BUILD and BOOST strategy, including the future development of Cambo.

    Ithaca Energy remains committed to investing in the UK North Sea, however, the impact of the amended Energy Profit Levy and the fiscal instability it has created continues to constrain our ability to invest. We are actively engaging, in a constructive manner, with the UK government in pursuit of the fiscal stability required to make critical investment decisions that will support the UK’s long-term energy security.”

    Shell’s Senior Vice President, UK Upstream, Simon Roddy, added: “Following an internal review, we have decided to sell our 30% working interest in Cambo and have agreed a process with Ithaca Energy for the sale of Shell’s stake in the field this year. We wish Ithaca Energy well in the future development of the field, which will be important to maintain the UK’s energy security and to sustaining domestic production of the fuels that people and businesses need.”
    Post Reply

    Return to “Field Development”

    Who is online

    Users browsing this forum: No registered users and 4 guests