Cairn Energy's strategy is to create value through an exploration-led investment cycle, and to commercialise and return this value to shareholders rather than follow long-term development-led growth. Its application of this approach in India over a decade ago led to spectacular success and value creation. Replicating this business model of discover, and develop with the potential to dispose, has been a considerable challenge. Exploration in Greenland did not produce any commercial success. However the company has worked hard to develop a more balanced, self-funding portfolio across the asset lifecycle. It has been substantially rewarded with key discoveries in Norway (Skarfjell) and most notably Senegal (SNE and FAN), which contributed to the company adding over 357 million boe of new resource over 2006 to 2015. Cairn has an active ongoing programme of appraisal and development work in Senegal which will see it return to creating positive value from exploration.
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Affected by supply and demand, the economy of individual countries and technological breakthroughs, oil and gas exploration is an industry in constant motion. The high costs of finding and developing new oil and gas fields that can be commercially developed has created a challenging atmosphere, with explorers increasingly seeing low returns, low value and slow progress.
This Exploration Summary report quantifies the company's exploration volume and value performance over the past 10 years, and reviews its outlook for future success.
Businesses can use this report to get a detailed analysis of this company, what exploration areas they're involved in, what wells to watch and how well placed they are. It will help you understand company performance and shows how the best explorers have achieved their success.
Wood Mackenzie benchmarks exploration results for over 40 companies. Our analysts provide accurate information on the cost of exploration compared to the value of discoveries so that you can develop profitable strategies. We are the established global industry standard for oil and gas exploration performance.
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Company report | Sep 2016
Cairn Energy oil and gas exploration summary
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