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Home › Dodgy Deals ›
Dodgy Deal
Cambo oil fieldUnited Kingdom

Project – Active

This profile is actively maintained
Lead organisations:
BankTrack & ClientEarth
Contact:

climate@banktrack.org

Last update: 2022-10-06 00:00:00
An off-shore oil rig in the North Sea burns off oil. Photo: Pxhere.com - Free of Copyrights (Creative Commons CC0)

Project – Active

This profile is actively maintained
Lead organisations:
BankTrack & ClientEarth
Contact:

climate@banktrack.org

Last update: 2022-10-06 00:00:00
Why this profile?

Why this profile?

The development of the Cambo oil field is clearly not aligned with the pathways required to meet the 1.5°C temperature goal under the Paris Agreement. The ‘Net Zero by 2050 Roadmap’ published in May 2021 by the International Energy Agency underscores the need to phase out oil and gas production and states that that no oil and gas fields are required beyond those already in production and approved for development.

What must happen

Banks and other financial institutions should not provide financial or advisory services relating to projects that involve new exploration or development of fossil fuels, such as the Cambo oil field project, or to companies planning them. The existing financiers of Siccar Point Energy and Shell should engage with them to influence them to stop pursuing the Cambo project, and consider terminating their relationships if they refuse.

About
Take Action!
Stop North Sea Oil & Gas
Sectors Oil and Gas Extraction
Location
Status
Planning
Design
Agreement
Construction
Operation
Closure
Decommission
Website https://www.ithacaenergy.com/

The Cambo oil field is located 125 kilometers north-west of the Shetland Islands in the United Kingdom. The oil field contains over 800 million barrels of heavy crude oil. It spans offshore blocks covered by two licences granted in 2001 and 2004 respectively. Siccar Point Energy acquired a 100% interest in the field in January 2017, before subsequently selling a 30% non-operated interest to Shell UK in May 2018. In April 2022, Canadian company Ithaca Energy acquired the field.

Impacts

Social and human rights impacts

Human rights impacts The dire outlook of climate change in excess of 1.5°C involves impacts on a range of internationally recognised human rights, including the rights to life, water and sanitation, health, food, a healthy environment, an adequate standard of living, housing, property, culture, self-determination, indigenous people, women, and development. Setting to one side their fossil fuel-related business activities to date, any future development of the Cambo oil field by Siccar Point Energy and Shell and the associated emissions would fuel future climate change-related human rights impacts, which are of the utmost severity and of an unprecedented scale.

The impacts of the Cambo oil field on human rights, and the implications for banks, were further elaborated in a September 2021 letter from ClientEarth addressed to the CEOs of 17 banks exposed to the project.


Environmental and climate impacts

In May 2021, the International Energy Agency, the world’s most influential energy forecaster, produced a roadmap for the global energy sector to reach net zero by 2050. One of the essential conditions for the energy sector to reach net zero emissions, it found, is “a huge decline in the use of fossil fuels”, stating that “there is no need for investment in new fossil fuel supply in our net zero pathway”. They add that there should be “no new oil and gas fields approved for development”.

Climate change impact The Cambo oil field would be able to produce 170 million barrels of oil a year - the climate equivalent of running 18 coal-fired power stations - over 25 years in the project’s first phase alone. This would result in 63.5 million tonnes of greenhouse gas emissions, further endangering the adverse impacts of global warming.

CO2 emissions Shell A landmark Dutch court ruling recently required Shell to reduce its total CO2 emissions, including the emissions resulting from the use of the fossil fuels it produces. This has significant implications for the North Sea oil industry’s promises to reduce emissions from extracting oil and gas – to create a “net zero hydrocarbon basin” as the Scottish Government says – while ignoring the emissions from burning the oil and gas extracted (FoE Scotland).


Other impacts

Corruption investigation Petrofac A firm being investigated on corruption charges and founded by a major Tory donor is a contractor on the proposed Cambo oilfield in the North Sea. Petrofac, whose co-founder Ayman Asfari has along with his wife donated almost £900,000 to the Conservative Party, is under investigation by the Serious Fraud Office for allegedly paying million-pound bribes to secure contracts in nine different countries (DeSmog).

Financiers

The Cambo oil field is owned by Siccar Point Energy (70%) and Shell (30%). Commercial banks are financing both companies through debt (lending and underwriting).

From January 2016 to September 2021, Siccar Point Energy has received over USD 2.3 billion in loans and underwriting services from 14 different UK and international banks. Its biggest financiers are DNB in Norway (USD 332 million), ING Group in the Netherlands (USD 199 million), and Groupe BPCE in France (USD 199 million). See below for more details on banks involved.

Commercial banks finance Shell through lending and bond issuance underwriting. Shell’s debt totalled USD 108 billion as at 31 December 2020. The company's current and recent financing includes:

  • Numerous bonds listed on the New York, London and Zurich stock exchanges with maturity dates up to 2052;
  • A USD 10 billion revolving credit facility and a dual currency USD 7.2 billion and EUR 4.4 billion revolving credit facility.

See BankTrack's Dodgy Deal profile on Shell for more information on Shell's financiers.

Institution type
Finance type
Year
Companies

Project sponsor

Siccar Point Energy

United Kingdom
Website
Majority owner of Cambo oil field (70%)
No companies

Other companies

Petrofac

United Kingdom
Website
Contractor for Cambo oil field

Shell

United Kingdom
Profile
Website
30% owner of Cambo oil field
No companies
News
BankTrack
Partners
Blog
External
Blog
BankTrack news BankTrack blog Partner news Partner blog

Climate groups call on Shell’s bankers to stop Jackdaw gas field

UK government’s regulatory approval opens the door for Shell to move ahead with the Jackdaw field
2022-06-03 | BankTrack
BankTrack news BankTrack blog Partner news Partner blog

Cambo: Ithaca Energy pledges to develop controversial oil field

2022-04-08 | BBC News
Blog
BankTrack news BankTrack blog Partner news Partner blog

Cambo oil field "paused" following pressure on Shell & banks

2021-12-12 | BankTrack
BankTrack news BankTrack blog Partner news Partner blog

Cambo oil field development off Shetland to be paused

The firm behind the controversial Cambo oil field development off Shetland is "pausing" the project, BBC Scotland has learned.
2021-12-10 | BBC Scotland
BankTrack news BankTrack blog Partner news Partner blog

Shell pulls out of Cambo oilfield project

2021-12-02 | The Guardian
Blog
BankTrack news BankTrack blog Partner news Partner blog

Glasgow wrap-up: updates from banks and civil society at COP26

With COP26 behind us, it’s as clear as ever before that banks must act urgently to help achieve the goal of limiting global warming to 1.5 C.
2021-11-17 | Nijmegen | BankTrack
BankTrack news BankTrack blog Partner news Partner blog

Cambo: Nicola Sturgeon says new oil field should be blocked on climate grounds

The Cambo oil field was being considered during the Cop26 climate conference in Glasgow
2021-11-16 | The Independent
BankTrack news BankTrack blog Partner news Partner blog

Cambo oil field project 'could jeopardise deep sea life'

The proposed Cambo oil field project could jeopardise hundreds of species and contribute to the climate crisis, environmental groups have warned.
2021-11-09 | BBC News
Blog
BankTrack news BankTrack blog Partner news Partner blog

Meet the banks funding the owners of the Cambo oil field

New research shines a spotlight on the banks backing Shell and Siccar Point Energy
2021-10-29 | #StopCambo
BankTrack news BankTrack blog Partner news Partner blog

Petrofac to fundraise £200million to pay for SFO bribery settlement

2021-10-26 | Energy Voice
BankTrack news BankTrack blog Partner news Partner blog

Banks due at UK’s ‘Green’ Investment Summit ‘financed £700 billion in fossil fuels since Paris Agreement’

Citi, JPMorgan and Barclays among “world’s biggest financiers” of oil, gas and coal at government summit on green future.
2021-10-18 | DeSmog
BankTrack news BankTrack blog Partner news Partner blog

Johnson’s backing for the Cambo oilfield is unscientific and potentially disastrous

2021-10-11 | The Guardian
BankTrack news BankTrack blog Partner news Partner blog

Letter from ClientEarth to 17 banks regarding the Cambo oil field

2021-09-14 | ClientEarth
Blog
BankTrack news BankTrack blog Partner news Partner blog

North Sea oil field development shows banks’ hypocrisy over climate

ClientEarth sends letter to 17 banks urging them to stop financing Shell and Siccar Point Energy, the companies pushing for the Cambo oil field
2021-09-14 | ClientEarth
BankTrack news BankTrack blog Partner news Partner blog

Scotland's Sturgeon calls on UK leader to reassess Cambo oilfield

2021-09-12 | Reuters
BankTrack news BankTrack blog Partner news Partner blog

Cambo chaos: the oil field embarrassing the government ahead of the COP climate talks

2021-08-31 | Greenpeace UK
BankTrack news BankTrack blog Partner news Partner blog

Oil firm under investigation for corruption is contractor on Cambo North Sea project

2021-08-24 | DeSmog
BankTrack news BankTrack blog Partner news Partner blog

Is a new oil field climate change hypocrisy?

2021-08-17 | BBC News
BankTrack news BankTrack blog Partner news Partner blog

IEA director hopes UK will be ‘inspiration for the rest of the world’ on climate action ahead of decision on Cambo oil field

2021-07-22 | Channel4 News
Resources
Documents
Links
2021-07-10 00:00:00

Cambo Field Development - Consultation Response

NGO document
2021-07-10 00:00:00 | ClientEarth et al
2021-09-13 00:00:00

Letter from ClientEarth to 17 banks regarding the Cambo oil field

NGO document
2021-09-13 00:00:00 | ClientEarth
2021-09-16 00:00:00

Watershed - The turning point for North Sea oil and the just transition

NGO document
2021-09-16 00:00:00 | Friends of the Earth Scotland, Oil Change International
2021-05-31 00:00:00

Annual report 2020

Annual report
2021-05-31 00:00:00 | Siccar Point Energy
2021-09-14 00:00:00

Environmental policy

Date listed represents date as accessed on website
Bank policy
2021-09-14 00:00:00 | Siccar Point Energy
2018-12-13 00:00:00

Siccar Point Energy increases existing reserves based lending facility

Company document
2018-12-13 00:00:00 | Siccar Point Energy
2020-06-30 00:00:00

Environmental Impact Assessment Cambo oil field

Company document
2020-06-30 00:00:00 | Siccar Point Energy
2021-06-30 00:00:00

Financial statements H1 2021

Company document
2021-06-30 00:00:00 | Siccar Point Energy

Stop the Cambo oil field website

Updates

2022

2022-10-06 00:00:00 | Scotland’s controversial Cambo oil field sold for £1.12bn

Ithaca Energy has acquired Siccar Point Energy for £1.12bn and with it the controversial Cambo and Rosebank oil fields. (Investment Monitor)

2021

2021-12-10 00:00:00 | Cambo oil field development off Shetland to be paused

Siccar Point Energy has decided to pause the development of the Cambo oil field off Shetland, after Shell announced it would pull out of the project a week earlier. (BBC Scotland)

2021-12-02 00:00:00 | Shell pulls out of Cambo oilfield project

Shell has pulled out of a controversial new oilfield off the Shetland Islands, plunging the future of oil exploration in the area into doubt. Shell, which was planning to exploit the field along with the private equity-backed fossil fuel explorer Siccar Point, cited a weak economic case as its reason for deciding not to go ahead with the project (The Guardian).

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