Parkmead, the North Sea-focused oil and gas group, has dropped its Perth development due to a lack of funding appetite and tightening regulations offshore the UK.
In a statement, Parkmead said going forward it would pivot towards gas assets and electricity from renewable sources and focus on existing North Sea assets that can de be developed quickly.
As a result, work on the Perth development, in the Central North Sea, is being halted with a write-down of £33mln while licences P588 and P2154 won’t be extended.
Parkmead added that problems arranging a floating platform and infrastructure hook-up had pushed up the costs of the project while a lack of public and political support for new oil projects resulted "in a very cautious and conditional approach from industry".
Earlier today, Labour Leader Kier Starmer promised to end North Sea exploration if elected and focus on clean power.
Skerrymore, also in the Central North Sea, will be drilled as quickly as possible, the company added, while other licence applications in the North will be quick turnaround, transition-style assets.
Tom Cross, executive chairman, commented: “Over recent years a great deal of our team's effort has been directed at trying to unlock the complex Perth area.
"Our team is naturally disappointed that despite these huge efforts, working closely with neighbouring operating companies and highly skilled supply chain companies, the combination of challenging factors means it is not economically viable to take the project forward. “
He added Parkmead remains in a strong position with the “exciting and significant upside offshore that Skerryvore presents in the near-term, and the Fynn Beauly and Fynn Andrew assets in the medium-term, together with any new licences”
Shares fell 11.6% to 16.4p.