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 has qualified as an operator in both the UK & Norway and has an exploration drilling campaign currently underway with up to ten wells planned in 2018-2019.
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 20% non-operated interest in the Nova development (formerly Skarfjell) in the Norwegian North Sea, located ~16km south west of the Gjøa field in Norway. Nova is expected to deliver plateau production of 50,000 barrels of oil per day (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 submitted to the Norwegian Ministry of Petroleum and Energy.
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.
Combined net production to Cairn from the Catcher and Kraken fields in the first half of 2018 averaged ~14,400 boepd with production in June averaging ~19,700 boepd (respectively ~13,000 boepd and ~18,200 boepd). Combined net production in the second half of 2018 is expected to average ~20,500 - 22,000 boepd net to Cairn.
Catcher is located in the UK Central North Sea ~180km off the North East coast of Scotland and comprises three separate fields, Catcher, Burgman and Varadero.
Production data from the three Catcher Area fields (Catcher, Varadero and Burgman) continues to demonstrate good pressure support and connectivity between the reservoirs. Several near field discoveries have been identified as potential subsea tie-backs to the Catcher Area Floating Production Storage Offloading facility to maintain and extend plateau production.
Catcher averaged ~27,000 barrels of oil equivalent per day (boepd) (gross) in the first half of 2018. Plateau production rates of ~60,000 barrels of oil per day (bopd) (gross) have been achieved since May 2018. Since first production, more than eight million barrels of oil have been produced and 16 cargoes lifted.
Kraken is a large heavy oil accumulation, located in the East Shetland basin, ~125km east of the Shetland Islands.
Kraken averaged ~30,700 bopd (gross) in the first half of 2018. Gross production reached 35,000 - 40,000 bopd in August 2018. Since first production, more than ten million barrels of oil have been produced and 20 cargoes lifted, with 16 in 2018, of which five were for Cairn.
The DC4 manifold is in position and flowlines have been installed. The drilling programme is now expected to commence in late September 2018, following a rig contract re-negotiation the Transocean Leader drilling rig is scheduled to relocate from a third-party exploration well.
First production from DC4 is expected in early 2019. Additional potential in the Kraken area is being reviewed for further possible drilling options in 2019 - 2020.