Ithaca Energy has struck a deal with Shell to market Shell’s 30% working interest in the Cambo field, which is the second-largest undeveloped oil and gas discovery in the UK North Sea, located in the West of Shetland region.

Possible outcomes of the agreement between Shell and Ithaca Energy for the Cambo oil field development include Shell selling a portion or all of its 30% share, Shell selling any remaining portion of its stake to Ithaca Energy and Ithaca Energy selling up to 19.99% of its share if a potential buyer wants greater equity.

Ithaca Energy’s agreement with Shell is a significant move toward Cambo’s development, according to Chief Executive Officer Alan Bruce, as the company aims to deliver its strategy to maximise shareholder returns, but it faces constraints due to the amended Energy Profit Levy and fiscal instability.