Cairn Energy wins two prospects in Gulf of Mexico

20 June 2017 (Last Updated June 20th, 2017 18:30)

UK-based Cairn Energy has secured interests in two licences in the Gulf of Mexico during the offshore bidding round.

UK-based Cairn Energy has secured interests in two licences in the Gulf of Mexico during the offshore bidding round. 

Subject to the final approval of authorities, the contract awards have been secured by Capricorn Energy, a wholly owned subsidiary of Cairn Energy. 

Both awarded licences, Block 7 and Block 9, are in the shallow waters of Sureste basin in the Gulf of Mexico at the water depths of 100m-500m. 

Block 7 will be operated by Eni with 45% interest, while Cairn and Citla will own 30% and 25% stakes respectively.

Cairn will operate Block 9 with 65% interest and Citla will have the remaining 35% stake. 

Cairn Energy CEO Simon Thomson said: "Cairn and its partners have identified and secured our favoured blocks with multiple standalone prospects and numerous follow-on tie-back opportunities based on 3D seismic data.

"Cairn and its partners have identified and secured our favoured blocks with multiple standalone prospects and numerous follow-on tie-back opportunities based on 3D seismic data."

"We are partnered with Eni, an experienced explorer, and operator in Mexico, as well as Citla Energy, a Mexican-focused, exploration company and look forward to working with our new partners and the Government of Mexico to deliver the work programme in the coming years." 

Production sharing contracts with Government of Mexico are expected to be signed later this year.

Cairn expects to start exploration drilling on both blocks in the 2019-20 period.

The region hosts multiple prospects in a variety of play types. It has recently been opened to international oil companies for bidding.