Development of the controversial Cambo oil field off Shetland has been paused.
Siccar Point Energy, the firm behind the scheme, said the project was “on hold in the short-term” after Shell withdrew its 30% stake last week.
In a statement, Jonathan Roger, Siccar’s chief executive, said:
“Following Shell’s announcement last week, we are in a position where the Cambo project cannot progress on the originally planned timescale. We are pausing the development while we evaluate next steps. We continue to believe Cambo is a robust project that can play an important part of the UK’s energy security providing homegrown energy supply and reducing carbon intensive imports, while supporting a just transition.”
Environmental campaigners had argued that the Cambo oilfield should not be allowed because of the UK’s legally-binding target of net zero emissions by 2040.
The Stop Cambo campaign said today:
“This is huge news. Now the UK government needs a real plan for a just transition for industry workers and communities and to rule out new oil and gas projects once and for all.”
The influential International Energy Agency reported in May that development of new oil and gas fields must stop this year for the world to reach its net zero goals.
Last month, Scotland’s first minister, Nicola Sturgeon, said Cambo “should not get the green light”.
This morning, Mary Church, head of campaigns at Friends of the Earth Scotland, said:
“This is another nail in the coffin for the Cambo oil field. Climate science is very clear that fossil fuels are driving the crisis and new projects anywhere in the world are a threat to people everywhere.
“The UK Government must officially reject the Cambo proposal once and for all and end licensing for all new oil and gas projects if it wants to play its part in limiting dangerous climate warming.
“Planning for a rapid and just transition to renewable energy cannot wait any longer or continue to be left to the whims of fossil fuel companies and the market.
“People who work in this industry and live in these communities know best what they need from the transition away from fossil fuels and they must be driving this process. Both the UK and Scottish Governments must urgently sit down with impacted workers and communities and ensure that they are at the heart of planning the transition away from fossil fuels to decent green jobs.
“We know that up to three decent green jobs can be created for every oil and gas job, but this won’t happen without government intervention and redirecting fossil fuel subsidies to support the transition.”