Cairn Energy has made reductions to its staff cutting 40% of its headcount in both full-time employees and contractors.
The company made the announcement in a pre-close update in which it said its 2015 focus would be on an appraisal and exploration programme in Senegal.
Cairn is currently still engaged in discussion with the Indian Tan department as it struggles to gain access to the value of its 10% share of Cairn Energy.
It said it was continuing to take all necessary steps to protect shareholders interests.
Simon Thomson, chief executive, said:”Our focus in 2015 is on delivering a multi well appraisal and exploration programme in Senegal, following our success in opening up this new Atlantic Margin basin last year.
“The large acreage position in Senegal offers material near term growth potential with numerous follow on prospects identified, and the Joint Venture is well positioned to benefit from the current reduction in industry costs.
“Cairn is fully funded to deliver its exploration and appraisal programme, along with the Kraken and Catcher developments which are on track for first oil in 2017.
“The company continues to seek a resolution to the Indian tax situation.”
The company is working closely with the government in the West African country and its JV partners to prepare the 2015 operated multi well evaluation programme.
Cairn said its post well analysis of SNE-1 and FAN-1 discoveries is also proceeding in line with expectations.
The company recorded net cash of $869million for the year ending December 31st 2014.
Cairn also said completion is expected this month in the sale of 10% interest in the Catcher development and adjacent acreage for a carry of the company’s exploration and development costs up to a cap of $182m.
The transaction will reduce forward capex to end 2017 by $380m. Cairn will retain 20% working interest in the Catcher licence.
First oil from the Catcher and Kraken developments in the UK North Sea is on track for 2017.
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