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Cairn Energy Agrees To Sell Senegal Interests; Plans Special Dividend Of At Least $250 Mln

Cairn Energy Plc (CNE.L) said it entered into an agreement to sell its entire 40% interest in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) Contract Area, including the Sangomar development, offshore Senegal, to LUKOIL (LUKOY.PK) for a cash consideration of up to US$400 million plus reimbursement of development capital expenditure incurred since 1st January 2020.

The deal is expected to close in the fourth quarter of 2020. Following completion, Cairn intends to return at least US$250 million to shareholders.

Simon Thomson, Chief Executive of Cairn said, "...With a strong balance sheet, low breakeven production and limited capital commitments, Cairn will have enhanced financial flexibility to invest in and grow the business whilst always remaining committed to returning excess cash to shareholders. The planned special dividend from the sale of the Sangomar asset reflects Cairn's long-standing strict capital allocation strategy of active portfolio management and returning cash to shareholders..."

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