Ithaca Energy said on Friday it had signed an agreement with Shell to market the oil major's 30% stake in the Cambo oil prospect in the UK North Sea, with a potential for Ithaca to increase its ownership.
Shell pulled its support for Cambo in late 2021 citing economic reasons, after the project became a lightning rod for climate activists seeking to halt the development of new oil and gas resources.
If the oil major does not sell its full stake to a third party, Ithaca - which is leading the development of the project - gets the option to top up its own stake of 70%. It would pay $1.50 per barrel of oil equivalent (boe) of so-called P50 resources in Cambo, which stood at 173 million boe as per the latest development plan.
"Securing a new owner for Shell's stake is an important step in Ithaca Energy progressing to Final Investment Decision," Ithaca Chief Executive Alan Bruce said in a statement.
The agreement with Shell also includes an option for Ithaca to sell a 19.99% stake in Cambo from its shareholding to any third party wishing a higher stake than Shell's 30%.
Ithaca listed on the London Stock Exchange last November and has been critical of a windfall tax on oil and gas producers in the British North Sea that was introduced last year.
It also owns a 20% stake in the Equinor-operated Rosebank field in the British North Sea, for which a final investment decision is outstanding.
Ithaca shares have lost around 35% since listing in London last November.
(Reporting by Eva Mathews in Bengaluru, additional reporting by Shadia Nasralla; editing by Uttaresh Venkateshwaran and Mark Potter)
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