Cairn announce signing of FID, page-2

Wed, 15th Jan 2020 07:00RNS Number : 7965ZCairn Energy PLC15 January 2020 For Immediate Release: 15 January 2020 CAIRN ENERGY PLC ("Cairn" or "the Company") Cairn takes Final Investment Decision on Sangomar Field Development in Senegal Cairn, along with its joint venture partners, Woodside and FAR, has signed a joint Final Investment Decision (FID) statement, in agreement with Petrosen and the Government of Senegal, at an official ceremony last night with the Minister of Petroleum and Energies, Monsieur Mouhamadou Cisse. The FID on Phase 1 of the Sangomar Field Development offshore Senegal follows the receipt last week of the 25-year Exploitation Authorisation from the Government of Senegal. Phase 1 of the development will target estimated 2P recoverable oil reserves of 231 mmbbls (gross). Over the life of the field, total recoverable oil resources are estimated to be approximately 500 mmbbls with the development also planning gas export to shore. Woodside, as Operator of the joint venture, has completed the purchase contract for the Floating Production Storage and Offloading (FPSO) facility and issued full notices to proceed for the drilling and subsea construction and installation contracts. The key contractors for the development are:Ø MODEC, Inc, for the purchase of an FPSO with an oil processing capacity of approximately 100,000 barrels per dayØ Subsea Integration Alliance (a non-incorporated alliance between Subsea 7 and OneSubsea) for the construction and installation of the integrated subsea production systems and subsea umbilicals, risers and flowlinesØ Diamond Offshore for two well-based contracts for the drill rigs Ocean BlackRhino and Ocean BlackHawk Simon Thomson Chief Executive of Cairn said;"Cairn's discoveries offshore Senegal from the country's first deep water wells opened up a new basin on the Atlantic Margin. Cairn has operated three drilling programmes and successfully laid the foundation for Senegal's first multi-phase oil and gas development. Senegal is now an attractive oil and gas province, drawing the attention of the global industry." Woodside CEO Peter Coleman said; "We look forward to progressing the project towards first oil in early 2023 and expect that our experience in offshore FPSO developments will support its delivery on cost and schedule. We are grateful for the ongoing support of the Government of Senegal and will be working with all stakeholders to ensure that the country's first oil project delivers enduring benefits to its people."