Cairn Energy has completed a farm to Dyas UK, comprising a 10% interest in the Premier Oil-operated Catcher development and adjacent acreage in the UK North Sea.
In return for the 10% stake, Dyas will carry Cairn’s exploration and development costs up to a cap of US$182 million, effective 1 January 2014. The Catcher development, which comprises an FPSO and subsea infrastructure, is on track for first oil from 2017.
As a result of the transaction, Cairn has reduced its forward capital expenditure to the end of 2017 by about $380 million. Cairn retains a 20% working interest in the Catcher license.