Cairn Energy PLC: Half-yearly report announcement
Tuesday, Aug 22, 2017
Cairn continues to deliver strong progress across the business.

In the North Sea, Kraken has commenced production and Catcher is scheduled for first oil later this year. In Senegal, planning work has commenced on the phased development of the world class SNE field.

Cairn has also added to its exploration portfolio with exciting new opportunities in Norway, Ireland and Mexico creating additional drilling prospects in the near term.

With a strong balance sheet and imminent cashflows, Cairn remains well funded to create and capture value for our shareholders.


  • Joint Venture (JV) planning underway for phased development of SNE field, Cairn targeting production rates of 75,000-125,000 barrels of oil per day (bopd) with first oil planned 2021-2023
  • Updated overall SNE 2C oil resource base of ~563 million barrels of oil (mmbbls)*, with additional recoverable gas resources of more than 1 trillion cubic feet (TcF)
  • Cairn estimates up to 25 wells planned in initial development phase, targeting ~240 mmbbls principally in S500 lower reservoir
  • Subsequent development phases to target resource base in S400 upper reservoir
  • Engagement with major FPSO and subsea contractors commenced prior to formal tendering process later this year
  • Targeting Evaluation Report and Exploitation Plan submission to Government of Senegal in 2018 for Final Investment Decision (FID) before end of 2018
  • Evaluation of potential further exploration opportunities underway, including in the shallower water Rufisque block

*ERC Equipoise Limited (ERCE) estimate

Exploration new ventures

  • New licences acquired in three countries: Norway, Ireland and Mexico in 2017, with drilling expected in 2018-2020


  • US$254 million (m) Group cash at 30 June 2017
  • Norwegian tax receivable of US$29m in H2 2017
  • Reserves Based Lending (RBL) bank facility remains undrawn with expected peak availability of US$350-400m and ~US$210m at year end 2017
  • FlowStream US$75m cash proceeds received in H1 2017
  • Remaining 2017 capex for Catcher and Kraken development projects of US$35m and US$75m
  • Exploration and appraisal (E&A) expenditure across the portfolio of US$150m in H2 2017
  • Following merger of Cairn India Limited (CIL) and Vedanta Limited (VL), Cairn holds ~5% of VL, valued at US$824m at 30 June 2017
  • Cairn remains unable to access its ~5% shareholding of VL pending resolution of the Indian tax dispute and dividends receivable of US$105m are fully impaired following an order directing payment from VL to the Indian Income Tax Department (IITD)


  • Kraken (Cairn 29.5% working interest (WI)) production commenced as anticipated in Q2 2017 with facilities commissioning and production ramp up underway. Plateau production 50,000 bopd in 2018 with ~15,000 bopd net to Cairn
  • Catcher (Cairn 20% WI) targeting first oil by year end 2017** with FPSO well advanced in Singapore. Plateau production 50,000 bopd with ~10,000 bopd net to Cairn
  • Skarfjell (Cairn 20% WI) concept selection for field development, targeting FID in H1 2018. Expected plateau production 50,000 bopd with ~10,000 bopd net to Cairn
** Operator estimate

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