A view shows a board with the logo of Shell at the company’s fuel station near a business centre in Moscow, Russia March 9, 2022.
(Picture: REUTERS)The UK has extended the licence for the controversial Cambo oil and gas field by two years, it has been reported.
The field operated by Shell and Siccar Point Energy will continue for a further two years to March 31 in 202 amid fears over the UK’s energy supply chain.
A spokesperson for Shell told Sky News: “The North Sea Transition Authority has awarded Siccar Point Energy and Shell UK an extension to the underlying licences containing the Cambo field which were due to expire tomorrow.
"At this time there is no change to our position of December 2021 but the extension to the licences will allow time to evaluate all potential future options for the project."
In December 2021, Shell announced it was pulling investment from the oil field.
Although the field is based 75 miles off the west coast of Shetland, any oil or gas produced would be owned by Shell before being sold on the international market.
Environmental campaigners have spoken out against the field with some groups claiming there is no future for oil and gas.
Friends of the Earth Scotland said: “There is no safe future for new oil and gas production in the North Sea, Cambo and all new field developments must be rejected.
“Shell and Siccar Point Energy have had years to develop the case for opening the Cambo field, and have failed. Two more years won’t make the project look any better in terms of its devastating climate impacts or the urgency of the transition away from fossil fuels.
“New fields approved today wouldn’t start producing for years, and would do absolutely nothing for people’s soaring energy bills. Any oil that these companies might extract in years to come will be theirs to sell to the highest international bidder, not reserved for the UK.
“The suggestion that increasing UK oil and gas production will protect consumers is simply false.
“The Government must reject all new oil and gas projects and instead rapidly scale up renewable energy while supporting a just transition for those workers and communities currently reliant on the oil and gas industry.”
The UK imports up to 47 per cent of its overall gas supply from Europe, with four per cent of that coming from Russia.
Approximately 44 per cent comes from the North and East Irish Seas.
In terms of oil, the UK imports eight per cent of its oil from Russia and has pledged to phase out energy imports from the state following the invasion of Ukraine.
Boris Johnson has pledged to put forward his energy security plan in a bid to become less dependent on foreign energy supplies.
The plan has so far been delayed and comes as wholesale gas prices have reached 210p per therm.
Due to rising gas and oil supplies, families are set to be hit by surging energy prices. Ofgem announced the price cap will rise to £1,971 as of April 1.
