Our business model

Cairn’s business model is to create, add and realise value throughout the oil and gas lifecycle within a sustainable, self-funding business.

Throughout this process the portfolio is closely managed to ensure assets are delivering optimum value.

Create value

Cairn seeks to create value through the discovery of hydrocarbon resources. Opportunities are accessed from the existing portfolio, from government licensing rounds and through acquisition.  

How we delivered in 2015

  • Drilled three exploration wells
  • Acquired 2,400km² of 3D seismic offshore Senegal
  • Awarded five new licences awarded in Norway, including one as operator; and made further applications in the Norwegian 2015 23rd licensing Round
     

Add value

Cairn looks to add value through optimising existing assets, seeing hidden value in assets that others may have overlooked, and through asset swaps and exchanges.

How we delivered in 2015 

  • Successful testing of SNE-2 appraisal well with positive results
  • Acquired additional 4.5% interest in Kraken development
  • Catcher and Kraken developments in the UK North Sea on track for first oil from 2017
  • Increased gross 2C resource estimate on SNE field from 330-385mmboe*
     

* resource upgrade based on wells drilled in 2015 and does not include results of the SNE-3 appraisal well

Realise value

Cairn has a proven track record of realising value for shareholders and then reinvesting in the business as well as returning cash to shareholders. Cairn is careful to maintain a strong balance sheet which can fund the Group’s exploration programmes which offer growth opportunities.  

The success of Cairn’s exploration and investment in India allowed the company to return a total of US$4.5 billion to shareholders in the last six years.

How we delivered in 2015

  • Proceedings against the Government of India under the UK-India investment Treaty seeking resolution of the restrospective tax dispute formally commenced.