Ithaca Energy PLC (LSE:ITH) said Shell PLC (LSE:SHEL, NYSE:SHEL) has formally agreed to sell its 30% interest in Cambo, the second-largest undeveloped oil and gas discovery in the UK North Sea.
Under the agreement, Shell can market and sell all or part of its stake. If Shell does not sell its entire holding, it can sell the remainder to Ithaca.
Alternatively, if the buyer wants more than a 30% stake, Ithaca said it is willing to reduce its interest in the field to accommodate the transaction.
In all scenarios, Ithaca said it would retain at least 50% of Cambo and remain the asset's operator.
CEO Alan Bruce said: "Securing a new owner for Shell's stake is an important step in Ithaca Energy progressing to final investment decision.
"Ithaca Energy's primary strategic focus is to maximise sustainable shareholder returns through the delivery of our buy, build and boost strategy, including the future development of Cambo."