Cairn Energy completes $323m Egyptian acquisition
Edinburgh-based Cairn Energy, together with its consortium partner Cheiron Petroleum Corporation, has announced the completion of the acquisition of a portfolio of upstream oil and gas production, development and exploration interests from Shell Egypt NV and Shell Austria GmbH in the Western Desert in Egypt.
Capricorn Egypt, a wholly-owned subsidiary of Cairn, acquired 50% of the Assets, with the remaining 50% acquired by Cheiron subsidiaries.
The acquisition value, which is subject to completion adjustments, is US$323 million net to Cairn, with additional contingent consideration of up to a maximum of US$140m over four years net to Cairn if certain requirements are met.
The gas-weighted portfolio, in a region with strong demand growth, offers low-cost production, near-term development, owned infrastructure and significant exploration potential.
Cairn has appointed Dr Eleanor Rowley as managing director, Egypt. Dr Rowley joins Cairn from TotalEnergies where she was Vice-President Exploration for the Middle East, Caspian, North Africa and Southern Europe.
Simon Thomson, chief executive of Cairn, said: “The addition of the Western Desert assets to our portfolio is an important first step in expanding and diversifying our producing asset base, alongside offering significant exploration potential.
“We look forward to working alongside our partners to deliver the attractive growth opportunities the assets provide. I would like to thank the Government of Egypt and the Minister of Petroleum and Mineral Resources for their approval of the transaction.”