Edinburgh-based international oil and gas company Cairn Energy said on Wednesday it ended 2020 sitting on a cash pile of $570 million and that it plans to spend around $85 million this year with the bulk going to the exploration and appraisal of wells in the UK and Mexico.
Cairn last month won a long-running $1.2 billion arbitration case against against the Government of India and CEO Simon Thomson said on Wednesday that Cairn is now “well-positioned to be opportunistic in the current market as it seeks to diversify and grow its production base.”
Cairn, which forecasts to produce 16,000-19,000 barrels per day this year, said it was engaging with the government of India over the payment of the award.
Thomson said: “Cairn enters 2021 with balance sheet strength and financial flexibility.
“The sale of the company’s interests in Senegal and return of capital to shareholders demonstrates continued strategic delivery and differentiation.
“The company is well-positioned to be opportunistic in the current market as it seeks to diversify and grow its production base.
“A significant milestone was achieved in December 2020 with a unanimous award in favour of Cairn in its arbitration with the Government of India under the UK-India Bilateral Trade Investment Treaty.
“We have engaged with the Government of India regarding adherence to the tribunal’s ruling and are taking all necessary steps to protect our rights to the award.”