6th Aug 2019 09:29
(Alliance News) - Cairn Energy PLC on Tuesday said it has entered into a farm-out agreement for a 10% interest in the Nova development, offshore Norway.
The oil & gas exploration and development company said ONE-Dyas Norge AS intends to acquire 10% in the project by paying USD59.5 million, plus customary working capital adjustments on completion. Cairn will use the proceeds of the transaction to fund exploration and development activities, it said.
Following this transaction, Cairn will retain 10% interest in Nova and reduce its capital expenditure by the end of 2021 in the Nova area by USD110 million.
The transaction remains subject to written consent by the Norwegian Ministry of Petroleum & Energy as well as partner and third-party approvals, the company noted.
Cairn shares were trading 1.5% higher in London on Tuesday at 148.20 pence each.
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