Cairn Energy upgrades offshore Senegal oil resources

Aug. 23, 2017
Cairn Energy Ltd. has increased its estimate of recoverable resources in SNE oil field offshore Senegal.  

Cairn Energy Ltd. has increased its estimate of recoverable resources in SNE oil field offshore Senegal.

The Edinburgh-based company is operator of a group that includes Australian companies FAR Ltd. and Woodside Petroleum Ltd.

Cairn says the most recent appraisal work has prompted it to raise its estimates for the discovery to 563 million bbl, which is up from 473 million bbl in its previous forecast.

Cairn says the group expects to make a final investment decision on the project at yearend 2018 and will be looking to bring the field on stream in 2021-23 if the go-ahead is given.

Cairn believes the project will break even if the oil price is in the low $30/bbl level and the hope is that the combine will vote to go ahead despite forecasts of continuing low oil prices for an extended period.

Earlier this year, FAR announced its own resource estimate of 2C contingent resources at SNE of 641 million bbl.