Cairn is looking to cut jobs after icy Arctic wind

OIL AND gas explorer Cairn Energy yesterday announced first-half, post-tax losses of $62m (£37m), compared to a loss of $219m in the same period a year ago.

The Edinburgh-based company said it would now need to re-assess staf­fing levels and cut costs.

Cairn is still trying to resolve a tax issue in India and said it would “take all necessary steps to protect shareholders’ interests”.

The group said a number of further exploration wells, “predominantly in the North Sea, will be subject to final investment decisions by partners”.

But together with its joint venture partners – Norway’s Statoil and Greenland’s national oil company Nuna­oil – it put controversial Arctic drilling plans on ice earlier this year to focus on efforts elsewhere.

It said there was a need to re-organ­ise “the group to ensure staf­fing levels are appropriate for the future.”

Cairn said its group cash position of $1.1bn was adequate to pay for its op­er­ations in the foreseeable future.

Cairn Energy chief executive Simon Thomson said: “The company is foc­used on creating value and share­holder returns from disciplined capital allocation across a balance of exploration and development assets.”

Shares in the FTSE 250 company closed down 0.05 per cent at 187.30p after falling sharply when the results were released.

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