Cairn to Sell Interests in UK Offshore Oil Fields for More Than $460M

March 9, 2021

Catcher FPSO used for oil production at the Catcher field / Credit: David Newlands/MarineTraffic.com
Catcher FPSO used for oil production at the Catcher field / Credit: David Newlands/MarineTraffic.com

London-listed Cairn has agreed to sell its interests in the UK North Sea Catcher and Kraken fields to Waldorf Production Limited for a cash consideration of US$460 million plus additional contingent consideration dependent mainly on oil prices from 2021 to the end of 2025. 

The consideration is subject to adjustments for working capital and other customary interim period adjustments from the economic effective date of January 2020.

Under the deal, Cairn will sell its entire 20 percent interest in the Catcher field and 29.5 percent interest in the Kraken field.

As already mentioned, the firm consideration of US$460 million. Additional uncapped contingent consideration dependent on oil prices and production performance from 2021 to the end of 2025: generating ~US$75 million at US$60 Brent and ~US$125 million at US$65 Brent.

The completion of the deal is completion currently expected in H2 2021

Simon Thomson, Chief Executive of Cairn said: "The divestment of our UK producing assets as they move into decline phase, will further strengthen our ability to pursue Cairn's strategic goals and position the company robustly for the decade ahead."

In a separate statement, Cairn, together with Cheiron announced the proposed acquisition of a portfolio of upstream oil and gas production, development and exploration interests from Shell in the Western Desert, onshore Egypt for a purchase price of US$646 million (US$323 million net to Cairn).

The deal also includes an additional contingent consideration of up to US$280 million (US$140 million net to Cairn) if certain requirements are met. 

Capricorn Egypt, a  subsidiary of Cairn, will take 50% of the assets, with the remaining 50% acquired by Cheiron.



Current News

Hexicon to Deploy Floating Wind Turbines Off Norway

Hexicon to Deploy Floating Wind Turbines Off Norway

Spirit Energy Gets Approval to Extend Vale Field Life

Spirit Energy Gets Approval to Extend Vale Field Life

Rosneft Posts $2B Income in 1Q, Boosted by Oil Price Recovery

Rosneft Posts $2B Income in 1Q, Boosted by Oil Price Recovery

Rockhopper vs. Italy: Tribunal Ruling on Offshore Project Expected in July

Rockhopper vs. Italy: Tribunal Ruling on Offshore Project Expected in July

Subscribe for OE Digital E‑News

Offshore Engineer Magazine