Royal Dutch Shell, which has a 30 per cent stake in the project, said that it has concluded the economic case for investment is “not strong enough” to go ahead.
“Before taking investment decisions on any project, we conduct detailed assessments to ensure the best returns for the business and our shareholders,” said Shell in a statement. “After comprehensive screening of the proposed Cambo development, we have concluded the economic case for investment in this project is not strong enough at this time, as well as having the potential for delays.”
The proposal has been highly controversial, particularly in the context of the critical UN COP26 climate conference in Glasgow in November, raising questions about whether the host country had the credibility to call for the phase-out of fossil-fuel developments with the Cambo development in the pipeline.
Licensing for oil and gas exploration at Cambo was initially approved in 2001. If the project receives the...