Ithaca Energy has closed the acquisition of the remaining 30% stake in the Cambo oil and gas field in the West of Shetland region of the UK North Sea from Shell.

The deal between the parties was announced in September 2023.

With the acquisition, Ithaca now owns a 100% stake in the field, which is anticipated to produce less than half the amount of carbon dioxide compared with the typical UK field.

UK-based independent exploration and production company Ithaca expects the Cambo field to provide the opportunity to increase production over the long term at a low estimated cost per barrel of operation.

The deal features a minimal cost exposure in the near term, with the consideration to be paid on whichever of the following two aspects is earlier: first oil, or the receipt of proceeds of any subsequent divestment of a working interest in Cambo by Ithaca Energy.

Ithaca Energy CEO Alan Bruce said: "We are pleased to announce the completion of this acquisition, taking our ownership of Cambo to 100%. Following completion, we are now in a stronger position to engage with potential farm-in partners to enable the future progression of the project to final investment decision.

“As the second-largest undeveloped oil and gas discovery in the UK, we believe that Cambo has an important role to play in providing critical energy security to the UK, while reducing the UK's overall emissions intensity."

Said to be the second-largest undeveloped oil and gas discovery in the UK North Sea, the Cambo field is due to be developed using a purpose-built Sevan FPSO vessel to produce hydrocarbons from two drill centres.

The field, which is located within UKCS Blocks 204/4a, 204/5a, 204/9a and 204/10a in the West of Shetland region, is expected to have an operational life of approximately 25 years.