LONDON (AP) — Royal Dutch Shell has pulled out of a controversial oil project near Scotland’s Shetland Islands, saying the project no longer makes economic sense for the company.
Shell had a 30% stake in the Cambo project, which is opposed by environmental groups who say Britain should stop developing new oil and gas fields as part of its efforts to combat global warming.
“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,” Shell said in a statement. “However, continued investment in oil and gas in the U.K. remains critical to the country’s energy security.”
Siccar Point Energy, Cambo’s controlling partner, said it still planned to move ahead with the project. Developing the field 125 kilometers (78 miles) west of the Shetland Islands will create 1,000 jobs and help ease the U.K.’s transition to a low-carbon economy, Chief Executive Jonathan Roger said in a statement.
“We will continue to engage with the U.K. government and wider stakeholders on the future development of Cambo,” he said.
The Cambo field will produce up to 170 million barrels of oil and 53.5 billion cubic feet of natural gas over 25 years, according to Siccar Point.