Siccar Point Energy inked a sale and purchase agreement with Shell U.K. Ltd. on March 28, divesting its minority interest in the Greater Cambo Area.

Under the agreement Shell will acquire a 30% non-operated working interest in UKCS licenses P1028 and P1189 (incorporating the Cambo discovery) and a 22.5% non-operated working interest in P1830 (including the Blackrock prospect), both located 125 km (77 miles) north-west of the Shetland Islands.

A final appraisal well is planned on the Cambo discovery in second-quarter 2018 and an exploration well is planned on the Blackrock prospect in 2019. Details of the consideration are not being disclosed, but the key elements are a cost carry contribution on both the wells and any subsequently approved development on Cambo.

Completion of the transaction remains subject to customary regulatory and partner consents.

“We are pleased that Shell has agreed to join us as a partner in this exciting project. Shell brings a wealth of relevant expertise and their interest is testament to the potential of the Greater Cambo Area and the quality of the work carried out by the Siccar Point team,” Jonathan Roger, Siccar Point’s CEO, said.

Offshore