CONTROVERSIAL plans to open up an oil field in the North Sea have been boosted after fossil fuels regulators extended an initial licence for the scheme one day before it was due to expire.

Backers of the Cambo oil field, located near Shetland, still hope to obtain a full licence for exploration from regulators and UK ministers, despite a new climate compatibility checkpoint being rolled out.

Under the draft climate plans by UK ministers, pre-existing applications including Cambo, would not need to meet environmental tests – despite opposition from Nicola Sturgeon and statutory advisers, the Climate Change Committee.

The mark of confidence for Cambo comes as the Scottish Government announced that its updated energy strategy, promised to be made public by the spring will now not be published until the autumn due to the "fast-moving energy landscape".

READ MORE: SNP Government delays publishing updated energy strategy

The original licence for the Cambo project, spearheaded by Siccar Point Energy, was due to expire today.

Shell had pulled out of the project, but indicated its intention to rethink the project earlier this month due to the global energy crisis and surging price of oil.

The Cambo oil field has still not received permission to produce fossil fuels with a full licence still to be determined by the North Sea Transition Authority, formerly the Oil and Gas Authority, and the UK Government.

It would take several years for the development to begin producing oil if given approval, so activists have highlighted that Cambo would do little to help the UK’s energy security in the short-term.

In a statement, a Shell spokesperson said: "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 (31 March 2022).

"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 a statement, Siccar Point Energy said: “Siccar Point Energy and joint venture partner Shell have been awarded a two-year licence extension for the Cambo field from the North Sea Transition Authority (formerly the Oil and Gas Authority).

“Siccar Point continues to work with its co-venturer Shell and the UK Government to map out the next steps on Cambo.”

But environmental campaigners have criticised the decision, pointing to the majority of Scottish political parties opposing the development in light of the climate emergency and highlighted legal commitments to end Scotland and the UK’s contribution to climate change by 2045 and 250 respectably.

READ MORE: Reviving Cambo North Sea oil plans 'will do nothing to solve energy price and security crisis'

Friends of the Earth Scotland’s climate and energy campaigner, Caroline Rance, said: “The UK Government is trying to keep this doomed oil field on life support but they are simply dragging out the inevitable rejection of Cambo and the transition away from fossil fuels. 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.”

She added: “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 Scottish Conservatives have placed the blame for the uncertainty over the Cambo project, which would see the majority of oil produced exported overseas, on the First Minister’s shoulders – despite the Scottish Government having no authority over new oil and gas licences being awarded.

READ MORE: SNP pressure Tory Government over 'fastest possible' move away from oil and gas reliance

Scottish Conservative shadow secretary for net zero, energy and transport, Liam Kerr, said: “This welcome licence extension underlines the importance of using our domestic energy supply during these uncertain times.

“Nicola Sturgeon has been completely short-sighted with her reckless approach in opposing the Cambo oil field.”

He added: “A report this week from Offshore Energies UK (OEUK) said if there is no such investment in projects like Cambo, we will be reliant on other countries for at least 80% of our gas and 70% of our oil by 2030.

“This is exactly why the SNP-Greens must drop their irresponsible playground politics, back North Sea oil and gas and install confidence for investors.”

But speaking at the Scottish Economic Forum on Wednesday, the First Minister pointed to “the scale of the economic opportunity that our renewable energy resources offer for us” and likened it to the oil and gas boom in the 1970s.

She admitted that “we haven’t been as good as we should have been in the past at harnessing the economic benefits of our energy resources”.

Ms Sturgeon added: “We don’t yet have the infrastructure and all of the jobs in place, but we absolutely see the potential and we know what we have got to do to make sure that it becomes the massive employer and generator of economic activity that oil and gas is and has been over the past four decades and more.

That’s important in all parts of the country but of course it is particularly important in the north east, where right now so many jobs and so much economic activity is supported by oil and gas.”