Cairn has entered into a farm-out agreement for the sale of a 10% interest in the Nova development offshore Norway.
ONE-Dyas Norge shall acquire 10% in the project by paying USD 59.5 million plus customary working capital adjustments on completion.
Following this transaction Cairn will 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 ~USD 110 million.
Cairn will 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.
The transaction remains subject to written consent by the Norwegian Ministry of Petroleum and Energy, partner and third-party approvals.
As a result of the transaction, subject to approvals, the partners in these licences will be as follows:
Jefferies International Limited has acted as financial advisor to Cairn in connection with the farm out agreement.