Cairn Energy raises North Sea oil field estimate

The company has a 10% stake in Cairn India, which has just made its 26th oil discovery in Rajasthan

One of the largest oil discoveries in the Norwegian sector of the North Sea in recent years is bigger than initially thought, explorer Cairn Energy has revealed.

Cairn had estimated that the Skarfjell discovery contained between 60 million and 160 million barrels of oil.

But it has raised the figure to between 74 million and 235 million barrels, following further drilling.

Cairn has a 20% interest in Skarfjell, which is operated by Wintershall Norge.

The discovery was made in April 2012 and was immediately followed by a 3D seismic survey.

Cairn Energy chief executive Simon Thomson said: "The combination of very good reservoir and large volumes will allow this discovery to be progressed towards development, with a number of commercially attractive options possible including a standalone facility or a hub development incorporating surrounding undeveloped discoveries."

Meanwhile, Cairn India - in which Edinburgh-based Cairn has a 10% stake - has made its 26th oil discovery in the Rajasthan block.

The find was made after drilling at the Raageshwari-South-1 exploration well.

Oil volumes at the well are being evaluated.