Cairn Sells 10 Percent Nova Stake for $59.5MM



Cairn Sells 10 Percent Nova Stake for $59.5MM
Cairn enters into a farm-out agreement with ONE-Dyas Norge AS for the sale of a 10 percent interest in the Nova development offshore Norway.

Cairn revealed Tuesday that it has entered into a farm-out agreement with ONE-Dyas Norge AS for the sale of a 10 percent interest in the Nova development offshore Norway.

The deal has an effective date of January 1 and ONE-Dyas Norge will purchase the stake for $59.5 million, plus customary working capital adjustments on completion.

Following the transaction, Cairn will retain a participating interest of 10 percent in the Nova development. Cairn revealed that it will use the proceeds of the deal to fund group exploration and development activities.

The transaction remains subject to written consent by the Norwegian Ministry of Petroleum and Energy, partner and third-party approvals. 

The Nova field development plan was submitted and approved in mid-2018 by the Norwegian Petroleum Directorate. Nova is expected to deliver peak production of 50,000 barrels of oil per day, with first oil targeted in 2021. Wintershall DEA is the operator of the project.

Back in May, Wintershall DEA installed two subsea templates at Nova. The development was the first subsea milestone for the project, Wintershall DEA highlighted.



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