In 2012, we started to build a position in the mature and emerging basins of the UK and Norway by acquiring exploration, appraisal and development assets and participating in licence rounds. Today, we have an interest in more than 30 licences in the UK and Norway, as well as a non-operated interest in three developments.
In 2012, we acquired non-operated interests in two of the largest developments in the North Sea, Kraken and Catcher, which are targeting first oil and cash flow in H2 2017. We also hold exploration acreage in the UK and Norway, including in the Barents Sea.
We hold three licences in the Barents Sea, including one as operator. The Barents Sea is believed to have high potential for commercial oil discoveries. According to the Norwegian Petroleum Directorate, the region may contain as much as half the country’s unexplored resources with yet-to-find hydrocarbon potential of 8.8 billion barrels of oil equivalent.
The mature and emerging basins of the UK and Norway provide balance to our frontier exploration portfolio and development assets, and once in production, will deliver the cash flow to sustain future exploration.
Both the Catcher and Kraken developments in the UK North Sea are on schedule to target first oil in H2 2017 and are significantly below budget. The Company holds a 20% non-operated Working Interest (WI) in the Catcher and a 29.5% non-operated WI in Kraken. Peak net production to Cairn of ~25,000 barrels of oil equivalent per day is expected from the two developments.
The start-up of these developments is significant, as it will mark our first production, and the re-establishment of a cash-generative production base, since 2012 when we sold the Indian business and returned cash to shareholders.
We also hold a 20% non-operated WI in the Skarfjell development in the Norwegian North Sea. A development concept has been submitted to the Norwegian Ministry of Petroleum and Energy, with a final investment decision planned for 2018.