Worker in hard hat on oil rig

Strategy

Cairn's strategy is to deliver shareholder value from discovery and development of hydrocarbons.

We have the following Key Performance Indicators (KPIs) in place to monitor the delivery of our strategy:

Deliver a sustainable business

Purpose: Maintain a self-funding business plan

2015 Performance:

  • Group remains funded to deliver firm exploration, appraisal and development programme through to free cash flow from 2017
  • Proceedings against the Government of India under the UK-India investment Treaty seeking resolution of the retrospective tax dispute formally commenced.  Cairn’s statement of claim to the arbitration panel will seek damages equal to the value of Cairn’s residual shareholding in CIL at the time it was attached

Deliver operational excellence

Purpose: Grow the reserves and resource base to provide a basis for future growth

2015 Performance:

  • Senegal Rufisque Sangomar 3D seismic acquisition successfully completed
  • Seismic delivery for non-operated projects was behind schedule
  • Catcher and Kraken projects progressing well. Operators of both projects continue to target first oil in 2017, subject to the timely delivery of the FPSOs
  • Following a rig selection process, the JV secured the Ocean Rig Athena for drilling. Costs for both rig and support services significantly lower than previous drilling campaign of 2013/14

Deliver Exploration and Appraisal Success

Purpose: Grow the reserves and resources base to provide a basis for future growth

2015 KPI: Invest in exploration and appraisal activities which add net 2C resources in excess of 20mmboe

2015 Performance:

  • Five exploration and appraisal wells drilled
  • 21mmboe net 2C added to the resource base from SNE-2 appraisal and West of Kraken wells
  • Atlas and Crossbill wells in Norwegian North Sea and Al Khayr well in Western Sahara were unsuccessful
  • Overall finding efficiency ranked in second quartiles

Portfolio Management

Active portfolio management and acreage protection

2015 KPI: Mature high impact exploration prospects ready for drilling in 2016 or 2017

2015 Performance:

  • Prospects review held and one independent and two partially dependent prospects identified in Senegal
  • In Norway, participated in 2015 APA and successful in all five applications. Also participated in 23rd Barents Sea Licensing Round where licence awards are expected in 2016
  • Prospectivity in Mauritania and Republic of Ireland continues to be assessed 
  • Following SNE-1 discovery, a full field long-term evaluation programme submitted to and approved by the Senegalese authorities in 2015 and Authorities granted a three year licence extension

Maintain Licence to Operate

Purpose: Deliver activities with a focus on safety of people and the environment

2015 Performance:

  • Total Recordable Injury Rate (TRIR) was zero per million hours
  • Two minor spills to the environment occurred during the Senegal campaign
  • CRMS substantially revised in line with latest IOGP guidance
  • Extensive contractor management programme completed including acceptance and readiness audits for Senegal
  • Worked closely with JV partners in Western Sahara to monitor and track human rights issues with ogoing engagement post-completion of drilling
  • Stakeholder engagement strategy and investment programme developed and implemented in Senegal
  • Enhanced risk assessment process for travellers to high risk countries

'Cairn’s strategy is to create and deliver value from the discovery and development of hydrocarbon resources. We achieve this from a balanced portfolio and a sustainable, self-funding business model.' 

Simon ThomsonChief Executive