The UK & Norway is a core region for Cairn and we have built a strong position in the region’s mature and emerging basins by acquiring exploration, appraisal and development assets and participating in licence rounds.
Cairn operates assets in both the UK & Norway and has recently completed a 2019 exploration drilling campaign consisting of four wells, three of which were operated by Cairn..
In 2012 we acquired non-operated interests in two of the largest developments in the UK North Sea, Kraken and Catcher. During 2017 both projects achieved first oil production.
Cairn also holds a 10% non-operated interest in the Nova development in the Norwegian North Sea, located ~17km south west of the Gjøa field in Norway. Nova is expected to deliver peak production of 50,000 barrels of oil per day (bopd) (5,000 bopd net to Cairn) with first oil targeted in 2021. Recent milestones include the installation of two subsea templates and 65 km subsea pipelines in preparation for tie-back to the Gjøa platform.
Cairn holds a 20% non-operated interest in the Catcher development and a 29.5% non-operated interest in the Kraken development. Along with future production from the Nova development, these projects will provide production and cash flow to Cairn.
Net production to Cairn from the Catcher and Kraken fields in 2018 averaged ~17,500* boepd. 2019 net production is estimated to be 21,000-23,000 bopd*.
The Catcher Area Field Development is a combined development of the Catcher, Varadero and Burgman fields ~170 km east of Aberdeen.
Gross production from the Catcher Area averaged ~66,600 bopd in H1 2019. Oil production from the Catcher FPSO continues to exceed nameplate capacity (60,000 bopd), aided by exceptional operating efficiency in excess of 95%. Reservoir performance to date has been good and analysis at year end 2018 resulted in a slight increase in 2P reserves.
Cairn is working with the rest of the Catcher Joint Venture to optimise further investment in the Catcher area, including consideration of in-fill drilling and near-field opportunities to extend plateau production. A firm commitment has been made to drill an additional Varadero producer in 2020, with additional optional rig slots available for two further wells.
Kraken is a large heavy oil accumulation located in the East Shetland basin, ~125km east of the Shetland Islands.
Gross production from Kraken averaged ~32,700 bopd in H1 2019, which was a significant improvement on 2018 production. This improvement is due to the commissioning of three additional DC4 wells in Q1 2019 and a stabilisation in water-cut. Cairn is working with the field operator and FPSO contractor to achieve further improvements in the uptime of the FPSO, and a planned shut-down is scheduled later in 2019.
The JV is evaluating further investment opportunities in the Kraken area to provide new drilling opportunities in 2020.
*Before FlowStream’s production entitlement; expected to be 1,350 to 1,575 bopd in 2019