Cairn eyes new projects beyond Greenland focus
By Sarah Young
LONDON (Reuters) - British oil explorer Cairn Energy (CNE.L: Quote) said it will spend some of its $1.2 billion of cash on deals in oil development and production as it seeks new projects to offset its exposure to exploration in Greenland.
"We do have that exposure to transformational exploration currently in the portfolio," Chief Executive Simon Thomson said. "So naturally, what we're also looking at for the new growth opportunities are potential appraisal, development and potentially even also producing properties."
"That balance will give us the sustainable cash flow to continue to be able to fund our transformational exploration," he told reporters on a call on Tuesday.
Cairn, whose main exploration assets are in Greenland and which earlier this year returned $3.5 billion to shareholders from the proceeds of a disposal of a stake in its Indian business, said it has $1.2 billion to spend on new opportunities.
Analysts said that Cairn could access further funds of up to $2.9 billion by selling its remaining 22 percent stake in its Indian business, Cairn India CAIL.NS.
Thomson said that the company regarded the Mediterranean region as core to its future, but added that the company was not "geographically constrained".
He declined comment on whether Cairn was interested in opportunities in the British-governed Falkland Islands, where Rockhopper (RKH.L: Quote) is seeking a partner to help fund the development of an oil field it has found there. Any deal in the Falklands will be controversial as Argentina claims sovereignty over the South Atlantic territory.
"It's got to have a balance of political, commercial and technical risk that satisfies us," Thomson said of the new opportunities the firm would consider. Continued...