Cairn Energy Venture Starts Engineering Work On SNE Field Off Senegal

LONDON (Alliance News) - FTSE 250 oil & gas company Cairn Energy PLC said on Monday that a joint ...

Alliance News 17 December, 2018 | 9:00AM
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LONDON (Alliance News) - FTSE 250 oil & gas company Cairn Energy PLC said on Monday that a joint venture has agreed to start front-end engineering design activities on the SNE field, offshore Senegal.

Cairn Energy holds a 40% working interest in the development field, with its subsidiary Capricorn Senegal Ltd part of the Rufisque Offshore, Sangomar Offshore & Sangomar Deep Offshore joint venture, which operates the field.

The agreement follows the award of the subsea FEED contract to subsea development services provider Subsea Integration Alliance for phase-one of the SNE field development.

The work includes activities to finalise costs and technically define the proposed development to enable a final investment decision, which is targeted for mid-2019.

Additional front-end engineering design contracts are expected to be awarded in early 2019.

The SNE development concept is a stand-alone floating production storage and offloading vessel

facility with supporting subsea infrastructure, designed to allow several development phases including options for gas exports to shore and subsea tiebacks from other reservoirs.

Phase one of the development will target 230 million barrels of oil resources from the lower, less complex reservoirs and an initial phase in the upper reservoirs.

The floating production storage and offloading vessel is expected to have a capacity of 100,000 barrels per day, with first oil production targeted for 2022.

In parallel to FEED activities, the joint venture is continuing to progress project financing and the environmental & social impact assessment.

Shares in Cairn Energy were up 0.4% at 153.80 pence on Monday.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2018 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
Cairn Energy PLC 179.80 GBX 1.35 -
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