Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Cairn says Kraken and Catcher reaching ‘natural decline phase’, targets ‘Jaws’ prospect with Shell

The Bumi-Armada-owned FPSO used to produce from EnQuest's Kraken field
The Bumi-Armada-owned FPSO used to produce from EnQuest's Kraken field

Scottish oil and gas firm Cairn Energy said today that its partners’ North Sea Catcher and Kraken fields were expected to “enter their natural decline phase” this year.

Cairn also revealed in a trading update its plans to participate in the Shell-operated Jaws exploration well on licence P2380, in which it holds a 50% working interest.

In addition, Cairn said it had “engaged” with the Indian Government regarding adherence to a tribunal’s award of $1.2 billion in compensation to the company in relation to a tax dispute.

Cairn said it was “taking all necessary steps” to protect its rights to the award and ensure India adheres to the ruling.

Edinburgh-headquartered Cairn’s production comes from a 20% interest in the Catcher field and a 29.5% stake in Kraken, both of which are served by FPSOs and produced first oil in 2017.

Premier Oil operates Catcher and EnQuest operates Kraken.

London-listed Cairn said its focus was on working with partners to arrest the decline rate and extend field life by boosting FPSO efficiency and maturing further drilling opportunities.

It said a new 4D seismic programme was planned at Catcher to better define reservoir targets, prior to a potential infill and satellite drilling programme.

This would include some of the deferred activities from 2020.

Meanwhile, work continues to realise the potential of the Kraken field’s western flank, Cairn said.

The company said it had budgeted about $75 million for exploration and appraisal activity in 2021, including in the UK, at Jaws, and in Mexico, at Eni’s Saasken discovery, of which it owns 15%.

The Jaws prospect is located in the central North Sea near Shell’s Nelson platform, which is understood to be a potential host.

Cairn received a 50% stake in Jaws last year through a swap with Shell.

The Anglo-Dutch giant received a 50% interest in the licence containing the nearby Diadem prospect in exchange.

Chief executive Simon Thomson said: “Cairn enters 2021 with balance sheet strength and financial flexibility. The sale of the company’s interests in Senegal and return of capital to shareholders demonstrates continued strategic delivery and differentiation.

“The company is well-positioned to be opportunistic in the current market as it seeks to diversify and grow its production base.”

Recommended for you

More from Energy Voice

Latest Posts