UK-based Siccar Point Energy has signed a sale and purchase agreement with Shell under which Shell will acquire a minority interest in Greater Cambo Area licenses offshore the UK.
Under the agreement, Shell will acquire a 30% non-operated working interest in UKCS licenses P1028 and P1189, incorporating the Cambo discovery, and a 22.5% non-operated working interest in P1830 (including the Blackrock prospect), both located 125 km north-west of the Shetland Islands, Siccar Point said on Thursday.
According to the company, a final appraisal well is planned on the Cambo discovery in 2Q 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. Completion of the transaction 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 a testament to the potential of the Greater Cambo Area and the quality of the work carried out by the Siccar Point team.”
The Cambo field is located 125 km north-west of the Shetland Islands and lies 30 km south-west of Rosebank and 50 km north of Schiehallion. The field was discovered in 2002 and has five wells drilled into the structure. Siccar Point acquired a 100% operated interest in the field from the takeover of OMV (U.K.) in January 2017.
The development concept will be focused on a two-phased approach. Phase 1 will target c90 mmboe of reserves which will then be expanded by a Phase 2 full-field development when the full area potential is better defined. A final appraisal well will be drilled in 2018 into the main reservoir sequence and an extended well test will be performed to obtain key information for the initial development phase.
The P.1830 Licence is located 140 km north-west of the Shetland Islands. It lies directly in between the Rosebank and Cambo Fields. Siccar Point acquired a 75% operated interest in the license also from the takeover of OMV (U.K.).
Following the completion, Shell will have a 30% interest in license P1028 and P1189, leaving Siccar Point with a 70% interest. Shell will also have a 22.5% interest in P1830, leaving Siccar Point with a 52.5% interest while the remaining 25% is held by Ineos.
Offshore Energy Today Staff