Shell's Cambo Exit: Ithaca Energy Acquires Remaining 30% Stake In The Development

Shell PLC SHEL is set to divest its 30% stake in the Cambo oilfield to U.K.-based independent exploration and production firm Ithaca Energy.

The transaction increases Ithaca Energy's ownership in Cambo to 100%. Cambo is the U.K. North Sea's second-largest undeveloped oil and gas find. 

The deal will reportedly have a value of $77.85 million, Reuters reported, citing a statement from an Ithaca spokesperson. As of Q2-end, Shell's net debt stood at $40.3 billion, with a gearing ratio of 17.3%.

Shell U.K. Limited has inked an agreement with Ithaca Energy for the divestment. 

Also Read: Power Play: Shell Divests Home Energy Business In UK & Germany To Octopus Energy

Cambo has been reportedly at the center of numerous protests by climate activists, and there have been longstanding rumors about Shell wanting to offload its stake.

On May 5, Shell's senior vice president of UK Upstream, Simon Roddy, told BBC News: "Following an internal review, we have decided to sell our 30% working interest in Cambo and have agreed a process with Ithaca Energy for the sale of Shell's stake in the field this year".

The purchase, which comes with limited immediate cost implications, grants Ithaca Energy total control over the future advancement of Cambo. 

"We believe that Cambo has an important role to play in providing energy security and economic benefit to the UK, while reducing overall emissions intensity," said Alan Bruce, Chief Executive Officer, Ithaca Energy.

Price Action: SHEL shares are trading lower by 0.03% to $63.50 premarket on the last check Tuesday.