19th Jan 2016 07:37
LONDON (Alliance News) - Cairn Energy PLC on Tuesday said the majority of its spending in the next two years will focus on its Senegal project, as it said progress had been made at its Mauritania and North Sea sites, and said it remains confident on its tax dispute with India.
The FTSE 250-listed oil and gas exploration and production company said it expects its development spending to hit USD492.0 million for 2016 and 2017, with the majority of the spending to focus on its projects in Senegal.
Cairn is working on a multi-well evaluation programme in Senegal and recently got good early test results from the SNE-2 appraisal well in the country. Work on the SNE-3 well is now underway, Cairn said, in order to further test the prospectivity of the project area.
Elsewhere, the company is conducting technical studies on its Block C19 site in Mauritania, though its planned appraisal well on the FEL 2/04 licence in Ireland has been delayed pending talks with its partners. In the North Sea, Cairn's Catcher and Kraken developments are on track to deliver first oil from 2017.
Cairn's other key issues surrounds its Indian arm, which it as the centre of an tax dispute with Indian authorities. Cairn said it is confident it will emerge with a favourable outcome from the case, in which India is demanding USD1.6 billion in tax payments.
By Sam Unsted; [email protected]; @SamUAtAlliance
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