Cairn Energy to return $250m to shareholders following Senagal exit

Exploration and development group Cairn Energy will return $250.0m to shareholders as a result of the group selling off its Senegalese assets.

Cairn said on Thursday that government and third-party approvals required for the sale to Australian firm Woodside Energy had been received, with completion of the deal expected to take place before the end of 2020.

The FTSE 250-listed group will receive roughly $525.0m in cash, comprising $300.0m from the sale and a further $225.0m payment to reimburse it for outgoings related to the assets since 1 January.

Cairn will also receive an additional payment of up to $100.0m if certain conditions are met relating to the date of first production from the Sangomar development and the prevailing oil price at that time.

As a result, Cairn will pay shareholders a special dividend 32.0p per ordinary share on 25 January.

As of 0915 GMT, Cairn shares were up 2.45% at 171.50p.