Efforts ongoing to unlock West of Shetland trio’s hydrocarbon arsenal

Ithaca Energy, a North Sea oil and gas operator and producer, has reported significant progress toward unlocking long-term value creation in the West of Shetland area through targeted value-led investment into three oil and gas projects being developed on the UK Continental Shelf (UKCS).

Ithaca Energy has highlighted increased and targeted organic investment, supporting production upside, reliability enhancement, and efficiency focus, alongside incremental investment in high-return wells this year.

Several steps have been taken to move forward with hydrocarbon projects located West of Shetland. As a result, the Rosebank project execution is progressing on all fronts, according to the North Sea player, which has confirmed that the full project update is to be completed in Q4 2025.

The company explains that the net Rosebank capital cost guidance range increased to $230-270 million, with additional spend toward the end of 2025 as the floating production storage and offloading (FPSO) nears yard work completion and targeted sail-away date, and reflecting non-cash FX headwinds.

The field, under development around 130 kilometers northwest of Shetland, has faced multiple delays and setbacks. As Equinor’s partner in the Rosebank field, Ithaca Energy previously disclosed progress in the multi-year development timeline, with estimated first production in 2026/27.

This scope of work encompasses the completion of a subsea campaign entailing the installation of all nine subsea structures ahead of schedule, in parallel with the ongoing modification scopes for the FPSO Petrojarl Rosebank, previously known as Petrojarl Knarr.

Ithaca claims that the 18-month Cambo license extension and completion of technical refresh provide a clear pathway toward a final investment decision (FID) and potential farm-down. The Cambo field is anticipated to deliver up to 170 million barrels of oil equivalent during its 25-year operational life and provide a further 53.5 billion cubic feet of gas.

With its modern, energy-efficient design and potential for electrification, Ithaca believes that Cambo could be one of the lowest-emission intensity assets in the North Sea. The field is expected to produce at less than half the CO2 intensity of the average UK field.

This is enabled by the FPSO design, which includes features such as being fully electrification-ready (subject to grid connection availability), zero routine flaring, and the Sevan FPSO hull design reducing power demand.

Based on Ithaca’s update, the Tornado gas discovery prospect is advancing through front-end engineering design (FEED) toward FID, with a no-objection to the concept secured from the North Sea Transition Authority (NSTA).

Situated approximately 18 miles southwest of the Cambo project, the gas field is perceived to have recoverable resources of around 80 million barrels of oil equivalent.

Ithaca’s execution of the UKCS growth strategy has led to the completion of the Japex UK E&P acquisition in July 2025 and the addition of a further 46.25% stake in the Cygnus field from Spirit Energy, which is set to be done in October 2025, following receipt of NSTA approval.

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