Shell has launched a sale process for its 30% stake in the Cambo oil prospect west of Shetland, industry sources said yesterday.

Reuters reports that the energy giant has hired investment bank Jefferies to run the disposal.

A Shell spokesperson declined to comment on the situation, while Jefferies did not respond to a request for comment.

The field is the second-largest undeveloped resource in UK waters, and is operated and 70%-owned by Ithaca Energy.

It was the end of last year when Shell said it had decided not to progress with its investment in Cambo.

The group said then that the investment case was not strong enough, but it was then claimed earlier this year that Shell was reconsidering its decision following the surge in the oil price.

Sources told the BBC in March that, while the company's official position had not changed, it did acknowledge that the economic, political and regulatory environment had changed enormously since the decision was initially announced.

All speculation ended

However, last month Shell chief executive Ben van Beurden ended all speculation that the company would still be involved in developing Cambo.

"Our position on Cambo hasn't changed. We can't see that being developed with us in there. The economics are simply not supportive enough," he said.

"Of course, we are looking at a slightly-better environment at the moment. But it is a long-term project - scope for delays and everything else will remain. We have better things to do with our money, to be perfectly honest."

Cambo is thought to contain up to 170million barrels of recoverable oil.

Ithaca has said that Cambo will be developed using a purpose-built floating production vessel, with emissions reduced by using modern equipment designed to operate without the need for routine flaring or venting of hydrocarbons.

When production commences, the field is expected to emit less than half of the amount of CO2 for each barrel produced than the average UK field.

Meanwhile, activists have announced planned protests this month against development of the Jackdaw find in the North Sea.

Energy Voice says a series of actions are to take place from August 20-27 through local rallies, parliamentary lobbying and online.

No locations have been given for the protests, which come after other recent actions in Aberdeen against new oil and gas developments.

Shell took the final investment decision in July to develop Jackdaw following regulatory approval earlier this year.

The project is expected to come online in the mid-2020s, and at peak production could represent over 6% of projected UK North Sea gas output.

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