Cairn Energy has reached a major North Sea milestone.
The independent oil and gas explorer confirmed BNP Paribas will underwrite its seven-year $575million debt facility to part-fund development in its Kraken and Catcher fields.
Chief executive Simon Thomson said: “Cairn has reached a key milestone for the Kraken and Catcher fields in the North Sea.
“BNP Paribas has agreed to fully underwrite a debt facility to part fund the development of the North Sea assets. The cash flow from these fields will underpin delivery of future exploration programmes with appropriate capital allocation within a balanced portfolio.
“The current fully funded programme continues with the first of two planned exploration wells in Senegal while in India the company is actively seeking resolution of the Indian tax matter.”
Cairn’s North Sea Catcher field has received the necessary board and joint venture partner approvals. DECC is expected to sign off on the project in due course with first oil being achieved in potentially 2016.
Cairn announced the milestone ahead of its half yearly results.
The firm also confirmed it expects to have spent nearly $1billion on developing its assets by the end of 2017.
Recent activity includes drilling the first of two planned exploration wells offshore Senegal. A second well located in the Cap Boujdour Contract Area is expected to be drilled in the final quarter of this year.
