Cairn Energy PLC (LON:CNE) has struck a deal to sell its remaining Norwegian assets to Solveig Gas.
Selveig will pay US$100mln to Cairn and the disposal will save Cairn some US$100mln of committed exploration and development capital expenditure.
Cash proceeds from the sale will be used to “fund ongoing business”, Cairn told investors.
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"This is a further attractive transaction for Cairn shareholders in line with our consistent strategy to realise value and redeploy capital within our portfolio,” said Simon Thomson, Cairn chief executive.
“We continue to have a material business in the UK North Sea where production performance of the Kraken and Catcher assets remains strong.”
Cairn noted that the asset sale is expected to complete in early 2020, and, the transaction is subject to the receipt of consent from the Norwegian Ministry of Petroleum and Energy.
The business unit being sold, Capricorn Norge AS, has a stated gross asset value of US$207.4mln as of 10 September 2019. Its net asset value was set at US$80.1mln and in the first half of 2019 financial year it made a US$6.5mln loss.