Cairn holds development assets which once in production will deliver cash flow to sustain future exploration.
Cairn is currently transitioning one of its 2014 exploration discoveries offshore Senegal, the SNE discovery, into development planning. SNE is expected to deliver gross production of ~100,000 bopd (barrels of oil per day), with an expectation of ~40,000 bopd production net to Cairn on plateau. First oil is targeted in 2022. Our partner Woodside has now assumed the role of operator, as planned, with Cairn retaining a 40% interest.
Cairn also holds a 20% non-operated interest in the Nova development in the Norwegian North Sea. Nova is expected to deliver plateau production of 50,000 bopd (10,000 bopd net to Cairn) with first oil targeted in 2021. Contracts have been awarded for both the subsea production systems and the drilling rig and the Plan for Development and Operation has been approved by the Norwegian Ministry of Petroleum and Energy.
During 2017 Cairn progressed its two development projects in the UK North Sea, Catcher and Kraken, into first oil production with total project capex expenditure estimated by the operators to be ~30% and ~25% below original project sanction. Cairn holds a 20% non-operated interest in Catcher and a 29.5% non-operated interest in Kraken.