Cairn Energy PLC (“Cairn”) announces that its wholly-owned subsidiary Capricorn Energy Limited (“Capricorn”) has today entered into a conditional sale and purchase agreement (“SPA”) with Santos International Holdings Pty Limited (“Santos”).
Pursuant to the SPA, Santos will acquire the entire issued share capital of Cairn Energy Sangu Field Limited (“CESFL”), which holds a 37.50 per cent interest in the producing Sangu gas field, offshore Bangladesh, and a 50 per cent interest in Block 16 exploration acreage. CESFL is also the operator of the Sangu gas field.
Santos will acquire all of the interests of Cairn in Bangladesh and in consideration will assume the obligations of CESFL. As a result of this transaction, Cairn will no longer hold any interests in Bangladesh.
Cairn has always striven to operate in the best interests of its shareholders, workforce, the local communities and the people of Bangladesh, running operations which have had a strong safety record while benefiting local communities with a comprehensive range of community programmes.
Cairn believes that now is the right time to transfer the full management of CESFL to its current partner, Santos, subject to certain conditions.
Simon Thomson, Commercial and Legal Director, Cairn Energy, said:
“Over the last 16 years, Cairn has been a strong supporter of international investment in Bangladesh and with its partners has invested more than US $1 billion in Bangladesh helping to provide Bangladesh and its people with energy security. Cairn is proud of its achievements in Bangladesh, and believes that now is an appropriate time for Santos to take over the management and ownership of CESFL.”
Santos first invested in Bangladesh in 2007 with the purchase of Cairn Energy Bangladesh Limited (“CEBL”). Santos is committed to ongoing investment in Bangladesh and plans to drill three wells in the Sangu area in 2011 after acquiring seismic surveys this year.
Martyn Eames, Vice President Asia Pacific, Santos Ltd, said the acquisition of CESFL was consistent with Santos’ Asian strategy of building material and sustainable businesses to meet growing domestic energy needs.
“We look forward to Cairn’s Bangladesh team joining us and Santos assuming operatorship of Sangu. We will work to help meet the country’s growing energy demand.”
Source: Cairn Energy, November 4, 2010;