Cairn Energy cuts investment costs for the next two years

Cairn Energy reduced its capital costs to $380m for the next two years after it concluded its farm out agreement in the Catcher development in North Sea.

The oil and gas explorer sold 10% of its stake in the Catcher development to Dyas UK and holds now a remaining 20% working interest.

Cairn said it expects the site to start producing oil from 2017.

Also on Wednesday, the group announced it was awarded five new licences in Norway.

“These licences do not carry firm well commitments and are in locations adjacent to current areas of interest in Norway,” the firm said.

Shares were down 0.07% to 181.57p at 12:13.