Cairn gets £48 million for farm-out deal off Norway

Edinburgh-based oil explorer Cairn Energy has done a £48 million farm-out deal for part of its share of the Nova development off Norway.

ONE-Dyas Norge AS acquires a 10% share for $59.5 million plus working capital adjustments on completion, subject to written consent by the Norwegian Ministry of Petroleum and Energy.

The deal leaves Cairn with a 10% share in the development, reducing its spending there by the end of 2021 by $110 million, which it initends to “fund group exploration and development activities”.

It means the share of licences PL418/PL418B is: Wintershall DEA (Operator) 45%, Spirit Energy 20%, Edison 15%, Cairn 10%, ONE-Dyas 10%.

Cairn retains 12% of licence PL378 along with operator Wintershall DEA at 76% and ONE-Dyas at 12%.

The Nova field plan was submitted and approved in mid-2018 by the Norwegian Petroleum Directorate with the expectation of first oil in 2021.

Jefferies International Limited has acted as financial advisor to Cairn in connection with the farm out agreement.