Cairn Energy has entered into a farm-out agreement for the sale of a 10 per cent interest in the Nova development offshore Norway to Dutch player One-Dyas.
The deal which will be effective from 1 January 2019, will see ONE-Dyas acquire 10 per cent in the project by paying US$59.5 million.
Following this deal Cairn will retain a participating interest of 10 per cent interest in the Nova development and reduce its capital expenditure to the end of 2021 in the Nova area by US$110 million.
In a statement, Cairn said it will use the savings to fund group exploration and development activities.
The Nova field development plan was submitted and approved in mid-2018 by the Norwegian Petroleum Directorate with first oil targeted in 2021.
After the transaction, which is still subject to approvals, the partners in these licences will be as follows:
Licences PL418/PL418B: Wintershall DEA (Operator) 45 per cent, Spirit Energy 20 per cent, Edison 15 per cent, Cairn 10 per cent, ONE-Dyas 10 per cent.
Licence PL378: Wintershall DEA (Operator) 76 per cent, Cairn 12 per cent, ONE-Dyas 12 per cent.