27th Nov 2019 10:50
(Alliance News) - Cairn Energy PLC on Wednesday announced the sale of its Norwegian subsidiary for USD100 million, meaning an exit from the country.
The operations are being bought by Solveig Gas Norway AG, and FTSE 250 energy firm Cairn said the sale will reduce its committed exploration and development spending by around USD100 million.
The proceeds of the sale will be reinvested into existing operations, Cairn added.
Chief Executive Simon Thomson said: "This is a further attractive transaction for Cairn shareholders in line with our consistent strategy to realise value and redeploy capital within our portfolio.
"We continue to have a material business in the UK North Sea where the production performance of the Kraken and Catcher assets remains strong."
Edinburgh-based Cairn has assets in the Americas, Africa, and the UK, including the producing Catcher and Kraken fields in the North Sea.
Shares were 0.2% lower on Wednesday morning in London at a price of 180.10 pence each.
By George Collard; [email protected]
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