Cairn Energy sees higher output in 2019

Oil producer Cairn Energy said its net share of full year production was estimated to be 19,000 - 22,000 barrels of oil equivalent, above 2018's average of 17,500.

Oil and gas sales revenue was $395m (£306m) at an average realised price of $68 per barrel. Average 2018 production cost was $20 a barrel.

Forecast capital expenditure for 2019 was lowered to $305m from $335m in the previous year.

Chief executive Simon Thomson said Cairn entered 2019 with “balance sheet strength and cash flow from North Sea production to fund significant growth opportunities”.

“The SNE and Nova development projects are progressing on track, evaluation of the recent Agar discovery is ongoing and we look forward to commencing a material exploration drilling programme in 2019 with up to seven wells offshore Mexico, the UK and Norway targeting a total gross volume in excess of one billion barrels,” he said.

“We also expect a final international arbitration decision on our India claim in the near term and we remain confident of our position."