A North Sea oilfield project off Scotland’s coast opposed by environmentalists and paused after energy giant Shell decided to exit the Cambo initiative has been boosted by an Israeli takeover.
Ithaca Energy, owned by Tel Aviv-listed Delek Group, announced late Thursday a deal to buy Siccar Point Energy for an initial $1.1 billion (1.0 billion euros).
Siccar, which owns 70 percent of the Cambo oilfield, paused development plans in December after Shell questioned the projected returns on its 30-percent stake.
Ithaca in a statement said its purchase of Siccar handed the group assets including the Cambo and Rosebank oilfields, “two of the largest undeveloped and most strategically important discoveries in the UK North Sea”.
The new owner added that Cambo and Rosebank “represent an opportunity for Ithaca to develop fields that will contribute significantly to the UK’s energy security”.
Also on Thursday, the British government announced plans to drill for more North Sea fossil fuels after the invasion of Ukraine by major oil and gas producer Russia contributed massively to soaring energy prices.
Greenpeace, heavily opposed to the Cambo project on environmental grounds, insisted on Friday that the oilfield would do nothing to solve Britain’s energy problems.
“The answer to the UK’s energy security does not lie in fossil fuels but in home grown renewables — both offshore and onshore — and stopping the energy waste in our homes,” said Philip Evans, Greenpeace UK’s oil and gas campaigner.
“These fast-to-roll-out solutions will also slash emissions and bring down energy bills.”
In Britain’s long-awaited energy strategy update Thursday, the government of Prime Minister Boris Johnson announced plans also for more nuclear stations as well as sizeable increases to output of solar and offshore wind power.
Business and Energy Secretary Kwasi Kwarteng on Friday revealed £375 million ($491 million) of UK state investment for development of other renewable energy projects such as hydrogen power and carbon capture.