Cairn Energy profits rise as company reaps Kraken rewards

Scottish oil firm Cairn Energy said production start-up from the North Sea Kraken field had steered the firm to a strong first half.

Edinburgh-headquartered Cairn has a 29.5% stake in the EnQuest-operated Kraken field, which reached first oil in the second quarter.

Cairn said production ramp up under way on Kraken, with a plateau of 50,000 barrels per day expected in 2018.

Premier Oil’s Catcher project, in which Cairn holds a 20% stake, is expected to commence production by the end of this year, with the FPSO nearing completion in Singapore. 

The company also has exploration ventures in the pipeline having acquired new licences in Norway, Ireland and Mexico in 2017. Drilling is expected in 2018 to 2020.

Offshore UK and Norway, plans are under way for a potential drilling campaign of up to 10 wells, two of which would be as operator, from 2017 to 2019.

Cairn is targeting more than 1billion barrels gross from these plays.

Planning is also in progress for the SNE field in Senegal, where Cairn is going after 75,000-125,000 barrels per day, with first oil planned for 2021-2023.

Cairn said it had engaged with major FPSO and subsea contractors ahead of the formal tendering process, due to begin later this year.

First-half pre-tax profits totalled £244million, a vast improvement on a deficit of £44million last year.

It recorded revenues of £8.4million.

Targeting Evaluation Report and Exploitation Plan submission to Government of Senegal in 2018 for Final Investment Decision (FID) before end of 2018

Cairn chief executive Simon Thomson said: “We continue 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.”

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