Cairn hands back two offshore Morocco permits

Offshore staff

EDINBURGH, UKCairn Energy has relinquished the Foum Draa and Juby Maritime permits offshore Morocco following disappointing drilling results.

To the south, offshore Mauritania, further technical studies are under way on block C19 (Cairn 35%), in order to de-risk prospects ahead of a decision on whether to progress to a second exploration phase.

The company has also received a presidential decree extending its current petroleum-sharing contract offshore Senegal by three years. Last month, a 3D seismic campaign was completed over 2,400 sq km (926 sq mi) of the company’s Sangomar Offshore block and the southwestern part of the Rufisque block.

During 2016-17, Cairn expects to spend $492 million on its current UK North Sea development projects. Catcher and Kraken (respectively in the central and northern UK sectors) remain on track for first oil from 2017, with targeted net production to Cairn of around 22,500 boe/d.

At Kraken capex costs have decreased by more than 10%, with gross capex now estimated at $2.86 billion. The FPSO is expected to be delivered from the Far East later this year.

Cairn has allocated $122 million for exploratory drilling and seismic commitments in 2016. Although these are directed mainly at operations offshore Senegal, the company will participate in a well in the UK North Sea this spring on the Premier-operated Laverda.

01/19/2016

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