(Adds Siccar Point statement, background)
LONDON, Dec 2 (Reuters) - Royal Dutch Shell said on
Thursday it had scrapped plans to develop the Cambo North Sea
oilfield, which became a lightning rod for climate activists
seeking to halt Britain's development of new oil and gas
resources.
Following "comprehensive screening" of the Cambo field,
Shell "concluded the economic case for investment in this
project is not strong enough at this time, as well as having the
potential for delays," the company said in a statement.
Private equity-backed Siccar Point, which owns a majority
stake in the field, confirmed in a separate statement that
"Shell has taken the decision to not progress its investment at
this stage."
The Cambo project off the Shetland Isles has been at the
centre of a political debate on whether Britain should develop
new fossil fuel resources as it seeks to sharply reduce its
greenhouse gas emissions in the coming decades.
"Cambo remains critical to the UK's energy security and
economy," Siccar Point Chief Executive Officer Jonathan Roger
said in a statement.
"Whilst we are disappointed at Shell’s change of position
... we will continue to engage with the UK Government and wider
stakeholders on the future development of Cambo," he said.
Shell owns 30% in the project, while Siccar Point, which
operates it, holds the remaining 70%.
(Reporting by Ron Bousso and Shadia Nasralla
Editing by Mark Potter)