Cairn sells 10% stake in Nova development to One-Dyas amid farm out agreement

  • Tue 06 Aug 2019 07:41

    Oil and gas company Cairn said it had sold a 10% stake in the Nova development offshore Norway to ONE-Dyas as part of a farm out agreement.

    With effect from 1 January 2019, ONE-Dyas Norge AS shall acquire 10% in the Nova development offshore project by paying US$59.5m and customary working capital adjustments on completion, the company said.

    Following the sale, Cairn would retain a participating interest of 10% interest in the Nova development and reduce its capital expenditure to the end of 2021 in the Nova area by about US$110m.

    Cairn would use the proceeds of the transaction to fund group exploration and development activities.

    The Nova field development plan was submitted and approved in mid-2018 by the Norwegian Petroleum Directorate with first oil targeted in 2021.

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