A firm behind controversial plans to develop the giant Cambo oil field off Shetland is being acquired by an Israeli-owned oil company.
Ithaca Energy has agreed to buy Siccar Point Energy in a deal worth up to around $1.5 billion (£1.125bn).
The company said the acquisition will position it as one of the leading oil and gas operators in the UK North Sea.
READ MORE: Israelii-owned Ithaca posts $1bn profit after sureg in oil and gas prices
It noted that Siccar Point’s portfolio includes a stake in the Cambo field which it described as one of the largest undeveloped and most strategically important discoveries in the UK North Sea.
Siccar Point has been working on plans to develop Cambo with Shell.
After facing huge opposition from environmentalists Shell put the plans on hold in December. The company said the economic case for investment in this project was not strong enough at the time and noted the potential for delays.
Shell and Siccar Point won an extension to the licences covering Cambo last week. Shell said then the two year extension to the licenses would allow time to evaluate all potential future options for the project.
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