Business
Agreement with Shell
Agreement with Shell.
About this update from Ithaca Energy Plc
[{"type":"text","content":"\n\n \n5 May 2023\n \n \nIthaca Energy plc (\"Ithaca Energy\" or the \"Group\")\n \nAgreement with Shell to market working interests in Cambo\n \nIthaca Energy (LON: ITH) is pleased to announce it has signed an agreement with Shell U.K. Limited (\"Shell\") which defines a marketing process for Shell's 30% working interest in Cambo.\n \nThe Cambo field is the second largest undeveloped oil and gas discovery in the UK North Sea, located in the West of Shetland region. The development provides Ithaca Energy with long term production growth at a low expected unit operating cost per barrel. With its modern, energy efficient design and potential for electrification, Cambo could be one of the lowest-emission intensity assets in the North Sea. The field is expected to produce at less than half the CO2 intensity than the average UK field, enabled by the FPSO design which includes features such as being fully electrification ready (subject to grid connection availability), zero routine flaring and the Sevan FPSO hull design reducing power demand.\n \nTo enable the successful progression of the project towards final investment decision (\"FID\"), a number of outcomes are possible under the agreement:\n \n· For Shell to market and sell a portion of its 30% working interest in Cambo, or the entire 30% interest;\n· In the event that Shell does not sell its entire 30% working interest, for Shell to sell any remaining portion of its own stake, which is not sold to a third party, to Ithaca Energy. The details of this agreement are outlined below.\n· For Shell to sell its entire 30% working interest and, if a potential buyer wanted a greater share of equity, for Ithaca Energy to sell up to 19.99% of Ithaca Energy's working interest in Cambo.\n \nThe agreement entered into between Shell and Ithaca Energy dated 4 May, provides an option for Shell to sell any remaining portion of its own stake (\"Option Stake\"), which is not sold to a third party to Ithaca Energy, following the conclusion of the marketing process, that will run six months from the date of signing the agreement. In parallel, Ithaca Energy has an option to acquire the Option Stake, in each case subject to regulatory approval.\n \nThe transaction structure provides upfront certainty...