Oil and gas company Cairn has sold its interest in the Catcher and Kraken oil fields in the UK North Sea to Waldorf Production.
The proposed sale and purchase deal was first announced in March, and following the general meeting held on October 28, 2021, Cairn on Wednesday announced the completion of the transaction.
Under the deal, Cairn sold its entire non-operated 20 percent interest in the Catcher field and 29.5 percent interest in the Kraken field.
Cairn said that firm consideration payable to Cairn is US$455 million, to be adjusted for working capital and interim period cashflows from the economic date of January 1, 2020.
Waldorf will pay additional, uncapped contingent consideration when Brent exceeds US$52/bbl on average in any of the five years 2021 to 2025.
"Assuming production is in line with Cairn forecasts, this contingent consideration is expected to generate approximately a further US$100 million at US$60/bbl Brent prices, US$175 million at US$70/bbl Brent prices, and US$240 million at US$80/bbl Brent prices," Cairn said.
According to Reuters, Brent crude futures fell $1.03, or 1.2%, to $83.69 a barrel by 0724 GMT Wednesday.
"The addition of the interests in Kraken and Catcher brings the average production from the Company’s assets up to circa 22,000 boe per day and increases 2P reserves to 52 million boe as of year-end 2020," Waldorf Production said.
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