Cairn Secures Debt Facility to Fund Catcher, Kraken Projects

UK independent Cairn Energy confirmed Thursday that it has agreed a seven-year debt facility of $575 million with BNP Paribas that will be used to fund part of the firm’s Catcher and Kraken development projects in the North Sea.

Cairn said that by the end of 2017 it expects to have spent approximately $1 billion on its development assets, using both existing cash resources and debt.

Cairn Chief Executive Simon Thomson commented in a company statement:

"Cairn has reached a key milestone for the Kraken and Catcher fields in the North Sea.
"BNP Paribas has agreed to fully underwrite a debt facility to part fund the development of the North Sea assets. The cash flow from these fields will underpin delivery of future exploration programs with appropriate capital allocation within a balanced portfolio."

Cairn said that the Catcher field development plan has received board approvals from all the joint venture partners and Department of Energy and Climate Change approval is expected shortly. The Kraken development is progressing "on schedule" with first oil expected during the second half of 2016 or early 2017.

Meanwhile, Cairn is currently drilling the first of two exploration wells offshore Senegal, where it has a 40-percent working interest. One exploration well is scheduled to be drilled on the Cap Boujdour Contract Area in the fourth quarter of 2014 with Kosmos Energy as operator. Two other non-operated wells, Aragon and West of Kraken in the North Sea, are scheduled in 2014 with a further North Sea well (Tulla) planned for 2015.

Have a news tip? Share it with Rigzone!


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

More from this Author
Rigzone Staff
e-mail us at
 -  What Should Go On Your Electrical Engi... (Jul 25)
 -  AECOM to Lead Permitting for Monkey Is... (Jul 25)
 -  LyondellBasell Plans Its Largest Inves... (Jul 21)
 -  Preparing a Mechanical Engineering Res... (Jul 19)
 -  Tesoro Signs Deal with Pemex to Enter ... (Jul 19)

Most Popular Articles

From the Career Center
Jobs that may interest you
Principal Financial Analyst-DIRECT
Expertise: Accounting|Financial Analyst
Location: Houston, TX
US Fort Lupton: Entry Level Technology Services Technician
Expertise: Production Engineering
Location: Fort Lupton, CO
Internal Controls Audit Manager Job
Expertise: Accounting|Budget / Cost Control|Financial Audit
Location: Houston, TX
search for more jobs

Brent Crude Oil : $50.97/BBL 1.53%
Light Crude Oil : $48.75/BBL 1.79%
Natural Gas : $2.92/MMBtu 0.68%
Updated in last 24 hours