New oil and gas project for UK looking likely

The UK Government may be about to approve a new North Sea oil and gas project.

The Cambo oilfield lies in blocks 204/9 and 204/10, approximately 125km north-west of the Shetland Islands off the shore of the UK. It is one of the deepest fields ever to be discovered in Northern Europe and is located in 1,100m of water.

The field is situated 30km south-west of the Rosebank field and 50km north of the Schiehallion field. It is jointly owned by its operator Siccar Point Energy (70%) and Shell UK (30%).

Siccar Point Energy has made an application for consent to the Oil and Gas Authority for an environmental statement for the Cambo field development. The subject of the environmental statement comprises a dedicated, moored floating production, storage and offloading (FPSO) vessel to produce hydrocarbons from two drill centers (comprising eight new production wells and four water injection wells).

If approved, oil will be exported via shuttle tanker and gas will be exported via a gas export pipeline (situated at water depths of 1,085m to 190m) extending 70 km to the southeast of the Cambo field, terminating at the West of Shetland Pipeline (WOSPS). The Cambo field is expected to produced oil and gas for 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.

Timing of the request could be viewed as problematic as the UK hosts COP26 this autumn.