Shell abandons plans to develop North Sea oilfield
Dec. 02, 2021 2:30 PM ETShell plc (SHEL)By: Carl Surran, SA News Editor11 Comments
- In a victory for environmental groups, Royal Dutch Shell (RDS.A +5.6%) says it will not move forward with development of the Cambo oilfield in the U.K. North Sea.
- "The economic case for investment in this project is not strong enough at this time, as well as having the potential for delays," the company says.
- The Cambo project has been controversial with environmental activists who say it is not consistent with the U.K.'s goals to reach carbon neutrality by 2050.
- Shell's partner and project operator Siccar Point Energy says it will engage with the U.K. government and stakeholders on future development of the field.
- Earlier today, Shell began up to $1.5B of share buybacks, the first tranche of $7B in distributions from the sale of the company's Permian Basin business to ConocoPhillips.