Cairn Energy has divested its interests in the Catcher and Kraken fields in the UK North Sea to Waldorf Production for $455m.

Under the deal signed in March 2021, Waldorf Production has acquired non-operated 29.5% interest in the Kraken field, as well as a stake of 20% in the Catcher field.

The sale forms part of Cairn’s strategy to strengthen its balance sheet while providing flexibility to sustain producing assets.

Waldorf Production said in a statement: “The addition of the interests in Kraken and Catcher brings the average production from the Company’s assets up to circa 22,000boe per day and increases 2P reserves to 52MMboe as of year-end 2020.”

Cairn said that the transaction includes additional uncapped contingent consideration. This is dependent mainly on oil prices from 2021 to the end of 2025.

In a press statement, Cairn said: “Assuming production is in line with Cairn forecasts, this contingent consideration is expected to generate approximately a further $100m at $60/bbl Brent prices, $175m at $70/bbl Brent prices, and $240m at $80/bbl Brent prices.”

Located in the East Shetland basin, about 125km east of the Shetland Islands, the Kraken field is a large heavy oil accumulation.

The Catcher Area Fields comprise the Catcher, Varadero and Burgman fields.

Recently, Cairn Energy and Cheiron Petroleum acquired Royal Dutch Shell’s onshore upstream interests in the Western Desert, Egypt, for $646m.

The sale included Shell Egypt’s interest across 13 onshore concessions. It also includes a stake in Badr El-Din Petroleum Company (BAPETCO), the company’s 50:50 joint venture with the Egyptian General Petroleum Corporation (EGPC).