Cairn’s exploration focus is on adding value for shareholders from high impact exploration at appropriate equity levels.
This exploration is sustained by our production and development assets in the North Sea which will provide the cash flow to support future exploration and development activity and deliver our long-term strategy.
Our focus on frontier acreage saw us open a new hydrocarbon basin in 2014 with discoveries offshore in Senegal. Cairn was the first to drill in deepwater offshore Senegal which remains relatively underexplored. Over the following three years we delivered a successful exploration and appraisal campaign increasing this significant resource base and transitioning the SNE discovery into development planning.
Atlantic Margin drilling programme
Along the Atlantic Margin, Cairn also holds exploration acreage offshore the Republic of Ireland and in 2017 we expanded our position by securing two new licences in Mexico to which we added a further block in Round 3.1 in 2018. The Mexican Gulf region is significantly under-explored compared to the nearby analogous United States Gulf of Mexico and we look forward to commencing exploration drilling in 2019.
Cairn also holds exploration acreage in the UK and Norway which we believe has high potential for commercial oil discoveries. The mix of mature and emerging basins along the UK and Norwegian continental shelves provides good opportunities for balanced portfolio growth and operational synergies. The region also provides an active market for the trading of assets, an important part of optimising value within the portfolio. In order to deliver maximum value Cairn continues to actively manage its portfolio of assets, with the constant evaluation of new exploration opportunities as well as opportunities to acquire and divest assets within the existing asset base to ensure optional portfolio balance and maximise value.