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.
(Courtesy Premier Oil)
The Catcher North and Laverda oil fields are expected to be tied back to the FPSO BW Catcher.
Offshore staff
EDINBURGH, UK – 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.
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.
