Company plans offshore drilling after receiving formal approval for licences

Cairn Energy is to press on with its intentions to begin drilling off the west coast during the second quarter of next year, now that it has received formal Government approval for its plans.

The Scottish exploration company announced yesterday that it has received formal approval from the Department of Communications, Energy, and Natural Resources to invest in two exploration licences in the highly rated Porcupine Basin off the west coast.

Two months ago, Cairn — which also operates in the North Sea, Scandinavia, Africa, Greenland, and the Mediterranean — announced it had added Ireland to its regional portfolio of assets by buying into two licences and one licensing option, currently operated by London-based explorer Chrysaor. They include the undeveloped Spanish Point gas condensate and the Burren oil discoveries.