Cairn acquires Western Desert onshore assets

Cairn and its consortium partner Cheiron Petroleum have acquired a portfolio of onshore upstream interests from Shell in the Western Desert, Egypt.

Capricorn Egypt, a wholly owned subsidiary of Cairn, acquired 50% of the assets, with the remaining 50% acquired by Cheiron subsidiaries. The acquisition value, subject to completion adjustments, is $323mn net to Cairn, with additional contingent consideration of up to a maximum of $140mn over four years if certain requirements are met. The gas-weighted portfolio, in a region with strong demand and growth, offers low-cost production, near-term development, owned infrastructure and significant exploration potential, the company says.