TIDMCNE
RNS Number : 1239Y
Cairn Energy PLC
11 May 2021
FOR IMMEDIATE RELEASE 11 May 2021
CAIRN ENERGY PLC ("Cairn")
Annual General Meeting Chief Executive's Statement
Simon Thomson, Chief Executive of Cairn Energy PLC, will make
the following statement to the Company's Annual General Meeting for
Shareholders at noon, 11 May 2021. As a result of the current
COVID-19 pandemic and the legislative measures and associated
guidance introduced by the Scottish and UK governments in response,
for the safety of our Shareholders, our employees, our advisers and
the general public, the General Meeting will be held as a closed
meeting. A video recording of the statement can be accessed at
www.cairnenergy.com/investors/shareholder-information/agm/ from
noon today. The Company will announce half-year results on
September 7, 2021.
This has been a year of transformation for Cairn. In delivering
our strategy, our priority has been on keeping our colleagues safe
throughout a period where the world remains impacted by COVID-19.
This remains our focus.
Despite the challenges the pandemic has presented, we have
significantly enhanced the portfolio through proactive management,
most recently with the proposed acquisition of Shell's assets in
Egypt's Western Desert. Following the sale of our interests in
Senegal, we also returned two hundred and fifty million dollars to
shareholders, whilst strongly positioning Cairn's business for the
future.
This progress has been delivered through Cairn's proven and
tested strategy. We manage our portfolio to optimise capital
allocation and retain flexibility, enabling us to return cash to
shareholders and invest in the sustainability and growth of our
cash-flow generating producing asset base. In turn, this funds
exploration, which continues to provide the potential for
transformational value, as well as shorter-cycle opportunities
supporting future cash-flows. When we target resources, we ensure
these are hydrocarbons that can have a competitive role in a
changing global energy mix.
We always execute our strategy responsibly. As we develop our
business, we will continue our alignment and contribution to the UN
Sustainable Development Goals; we will ensure our portfolio remains
resilient and relevant against the backdrop of the energy
transition; and, we will meet the expectations of our host
governments and communities. Cairn is committed to playing its
part, and during this year, we will set out our roadmap to ensure
we meet our net zero commitments at or before 2050.
We are now positioned to deliver Cairn's next stage of growth,
with an important first building block being the proposed
acquisition of Shell's Western Desert Assets in Egypt. This expands
and diversifies our producing base with low-cost, sustainable
gas-weighted production close to growing markets, and adds
significant development and exploration growth potential. We are
tremendously excited about the potential of these assets.
Together with our joint venture partner, Cheiron, we are
actively engaged with Shell on transition arrangements. We continue
to expect the acquisition to be completed in the second half of
2021 and we very much look forward to delivering the significant
value these assets offer.
Divestment of our interests in our Catcher and Kraken producing
assets in the UK North Sea comes at the right point in the cycle
and allows us to retain exposure to oil price and reservoir
performance upside, whilst further supporting our ability to pursue
our strategic goals. We anticipate the sale to Waldorf Production
to complete in the second half of 2021 with production from these
assets expected within our annual guidance for 2021 of
16,000-19,000 barrels of oil per day.
Our exploration portfolio provides us with short-cycle,
high-return opportunities and attractive frontier positions. This
year, we are participating with our joint venture partners in
near-term wells in Mexico and the UK North Sea. In Egypt, we have
tremendous short-cycle, low-cost exploration potential in a proven
hydrocarbon basin, with gross unrisked resources of around eight
hundred million barrels in our operated licences alone. And since
our last reporting date, we have further enhanced our frontier
positions, with an exploration licence granted to Cairn for acreage
that includes a material opportunity offshore Mauritania. This,
alongside our existing acreage in Suriname, means we are invested
in attractive areas with transformational value potential and
flexibility around the capital programme.
Underpinning our production, development and exploration
activity is a robust balance sheet, enabling our flexibility to
fund the right choices, at the right time, and allowing us to
further enhance the portfolio as Cairn continues to pursue
sustainable growth.
Before I update you on India, may we convey our deep feelings of
sympathy and concern for the current and developing health
situation in the country. We earnestly hope that India will see
relief from the pandemic soon.
In December last year the tribunal established to rule on our
claim against the Government of India found in Cairn's favour and
awarded us damages of $1.2bn plus interest and costs. This ruling
is binding and enforceable under international treaty law. Whilst
India has sought to challenge the basis of the award through
set-aside proceedings in the Dutch courts, we remain confident of
our position and continue constructive engagement with the
Government of India whilst at the same time taking all necessary
actions to protect our rights to the award and access the value of
it as early as possible.
Cairn is strongly positioned for the future.
We have significant value to deliver from our exciting proposed
acquisition in Egypt - an important first leg in a new phase of
growth for our business.
We have exploration positions offering short-cycle, high-return
success, alongside transformational potential.
Finally, we have the balance sheet strength, financial
flexibility and capital discipline to deliver value growth for
shareholders from a responsible, sustainable and transparent
business.
ENDS
Enquiries
Analysts/Investors
David Nisbet, Corporate Affairs Tel: 0131 475 3000
Media
Linda Bain/Jonathan Milne, Corporate Affairs Tel: 0131 475 3000
Patrick Handley/David Litterick, Brunswick Tel: 0207 404 5959
Group LLP
About Cairn Energy PLC
Cairn is one of Europe's leading independent energy companies
and has been listed on the London Stock Exchange for 30 years.
Cairn has explored, discovered, developed and produced oil and gas
in a variety of locations throughout the world as an operator and
partner in all stages of the oil and gas lifecycle.
Cairn's exploration activities have a geographical focus in the
UK North Sea, West Africa and Latin America, underpinned by
interests in production and development assets. Cairn has its
headquarters in Edinburgh, Scotland supported by operational
offices in London and Mexico.
For further information on Cairn please see:
www.cairnenergy.com
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