Plans to develop the controversial Cambo oil field in the North Sea may be back on track after the owner of the field was purchased by an energy firm in a $1.5bn deal.
Ithaca Energy has acquired Siccar Point Energy, who had put plans on hold to develop the field near Shetland after Shell pulled out in December.
The company will now take on four of the UK’s largest oil and gas fields, as well as the undeveloped Rosebank and Cambo fields.
Ithaca has pledged to move forward with plans to develop the fields, saying the ‘transformational” deal would help secure domestic energy supply for the UK.
Alan Bruce, CEO of Ithaca Energy, said: “The development of the Cambo and Rosebank fields is a huge opportunity to not only help secure the UK’s energy future for at least another quarter of a century, but also to create thousands of direct and indirect jobs in the process.
“We are excited about the future for the enlarged Ithaca, the role we will play in the UKs energy supply, and look forward to welcoming our new colleagues from Siccar Point.”
The Cambo oil field has been marred with controversy, with climate campaigners calling for an end to fossil fuel production.
Cambo is expected to deliver up to 170 million barrels of oil during its 25-year operational life, which Itheca said would help reduce the need to import more carbon intensive alternatives and increase the UK’s energy independence through the energy transition.
It comes as the UK is undergoing a cost-of-living crisis, with energy prices skyrocketing by more than 50% after a new price cap was announced in February.
The invasion of Ukraine by Russia has also pushed prices for some commodities up, with consumers feeling the economic pain.