The Return to the North Sea: Looking To Unlock Further Value

摘要

After a period of nearly 10 years absent from the North Sea oil and gas sector, in 2012 Cairn Energy re-entered the UK Continental Shelf, and for the first time entered the Norwegian North Sea through the combined corporate acquisitions of Agora Oil and Gas AS (a private Norwegian company) and Nautical Petroleum (an AIM-listed E&P company), respectively. Cairn had upstream experience in both the UK and Dutch sectors of the North Sea and was an active non-operating partner in the Gryphon heavy oilfield in Quad 9 and in the P6 and P12 gas fields in the Netherlands. This paper outlines the method and approach taken to rebalance Cairn’s portfolio after sustained success in South Asia and the sale of Cairn’s majority shareholding in Cairn India and the subsequent need to rebuild a portfolio with a cash flow generating base to underpin exploration and appraisal opportunities, both internationally and in the North Sea itself. It explains Cairn’s rationale and key drivers for entry and (re)-investment in the North Sea versus other possibilities. It also discusses the importance and value of preserving knowledge and expertise within the acquired companies and the process of integration. The paper will also investigate: (i) the technical aspects of Cairn’s acquired interest in two key oilfields, Kraken and Catcher which, in gross terms, will deliver approximately 10% of the UK’s oil production when onstream and (ii) Cairn’s remaining exploration portfolio in the North Sea and subsequent plans and opportunities for growth.