Oil and gas firm Cairn Energy has reduced its capital expenditure budget to $380m (£252m) for the period ended 31 January 2017.
The company’s decision follows the completion of a farm out agreement with Dyas UK, part of the Netherlands-based exploration and production group.
Cairn will sell Dyas a 10 per cent interest in its Catcher development in the North Sea in return for Cairn’s exploration and development costs up to a cap of $182m, effective 1 January 2014. According to Cairn, which will keep a 20 per cent working interest in the Catcher licence, the development is on track for first oil from 2017.
In addition, Cairn, through its subsidiary Capricorn Norge, has been awarded non-operated interests in five licences at sites near “current areas of interest” in Norway. The licences, which do not carry firm well commitments, are in line with Cairn’s ambition to increase its activity in Norway.