UK's Cairn Energy exits North Sea production in shift to Egypt

London-listed explorer Cairn Energy has completed the sale of its stakes in two North Sea oil fields to independent Waldorf Production, it said Nov. 2 as the company shifts focus away from Northwest Europe.

In a statement, Cairn said the final sale price was $455 million, close to the $460 million originally announced in March, with additional sums to be paid up to 2025 at oil prices in excess of $52/b.

The assets comprise a 29.5% stake in the Kraken ultra-heavy oil field, operated by London-listed EnQuest, and a 20% stake in the Catcher field, operated by London-listed Harbour Energy.

Both fields are standalone developments that load crude directly onto shuttle tankers.

Cairn has been trying to strengthen its balance sheet and reassure investors after a run of poor results from exploration in Norway, and as the UK assets show signs of decline.

The assets should, however, lift Waldorf's production to around 22,000 b/d of oil equivalent, Waldorf said separately.

Cairn is also hopeful of a resolution to a long-running tax dispute with Indian authorities that it expects will yield over $1 billion.

Cairn sold its Norwegian upstream assets in 2019, having also earlier in the decade exit a costly and largely fruitless round of Greenland exploration.

In March 2021 the company announced a switch to Egypt and the purchase of a 50% stake in Shell's longstanding Western Desert oil operations, including both production and exploration assets, a deal completed in September.

It also follows a decision to sell its assets offshore Senegal to Australia's Woodside Energy in 2020, relieving the company of sizeable development spending commitments.

Cairn still has some UK exploration assets, with wells planned in the coming months alongside Shell.