Siccar Sells Down UK Licences to Shell

Upstream firm Siccar Point Energy announced March 29 it has sold down non-operated, chiefly oil, interests in two UK upstream licences to Shell.

Siccar Point said it was pleased that Shell had agreed to join us as a partner, bringing its "wealth of relevant expertise" adding that Shell's interest "is testament to the potential of the Greater Cambo Area and the quality of the work carried out by the Siccar Point team.” 

No transaction price was disclosed but Siccar Point said that key elements are a cost carry contribution on both the wells and any subsequently approved development on Cambo.

Under agreements signed March 28, Shell acquires 30% of P1028 and P1189, which include the Cambo discovery, leaving Siccar with 70%; and a 22.5% non-operated working interest in P1830, which includes the Blackrock prospect, both 125 km north-west of the Shetland Islands. That leaves Siccar with 52.5% in P1830/Blackrock. Cambo contains over 600mn barrels of oil in place (gross), according to Siccar's website. Blackrock is located between Cambo and the Chevron-operated undeveloped Rosebank oil field in which Siccar Point has a stake.

A final appraisal well is planned on the Cambo discovery in Q2 2018 and an exploration well is planned on the Blackrock prospect in 2019. Completion of the transaction remains subject to customary regulatory and partner consents.

Last November Siccar Point sold interests in two other West of Shetland licences, at that time to another relative newcomer Ineos, the petrochemicals company.

Siccar Point, which is backed by private equity firms Blackstone Energy and BlueWaterEnergy, bought its first significant assets from OMV in a roughly $1bn deal reached in late 2016.