Cairn scales back offshore exploration, North Sea development

March 27, 2020
Cairn Energy now expects planned capex this year of less than $45 million on its UK North Sea producing facilities, $20 million less than in its previous forecast.

Offshore staff

EDINBURGH, UKCairn Energy now expects planned capex this year of less than $45 million on its UK North Sea producing facilities, $20 million less than in its previous forecast.

The reduction will come from identified cost savings and the deferral of certain activities planned for the Premier Oil-operated Catcher fields in the central sector.

In addition, Cairn is deferring all forward capex on exploration and appraisal activity apart from ongoing operations on the Eni-operated Ehecatl well offshore Mexico.

This will cut the company’s exploration spend to around $100 million this year, compared with the original forecast of $150 million.

Cairn added that it remained in good shape with a 2020 opening cash position of $255 million (helped by the recently completed sale of its Norwegian subsidiary).

It expects UK production this year in the range 19,000-23,000 b/d with 36% of mid-case production hedged at $62/bbl Brent and a targeted all-in production cost of less than $20/boe.

03/27/2020