Ithaca Energy To Buy Remaining 30% Stake In Cambo From Shell U.K.

(RTTNews) - Ithaca Energy Plc (IAE.L), a British oil and gas company, on Tuesday announced its agreement to acquire the remaining 30% stake in Cambo from Shell U.K. Limited. The agreement is subject to regulatory approval.

The Cambo field is the second largest undeveloped oil and gas discovery in the UK North Sea, located in the West of Shetland region. The acquisition will provide Ithaca Energy with full control over the progression of the future development of Cambo.

The company said the acquisition has minimal near-term cost exposur.

In May, Ithaca Energy had signed an agreement with Shell U.K. which defines a marketing process for Shell's 30% working interest in Cambo. Ithaca Energy then agreed to retain at least a 50% working interest in Cambo and to remain the operator of the asset.

The company now noted that the consideration, as agreed earlier, is payable on the earlier of first oil; and the receipt of proceeds of any subsequent sale of a working interest in Cambo by Ithaca Energy. It is subject to Ithaca Energy proceeding with FID and/or the NSTA providing development consent.

Alan Bruce, Chief Executive Officer, Ithaca Energy, said, "We are pleased to conclude the marketing process with Shell and to take full ownership of the Cambo development. Our primary focus continues to be the delivery of our BUY, BUILD and BOOST strategy, including the future development of Cambo, subject to fiscal conditions."