Edinburgh-based Cairn Energy has awarded an important contract to UK-based Xodus covering early engineering work on its frontier SNE oil project off Senegal.

Xodus was discreetly awarded this prestigious contract last month, said well-placed sources, with the work understood to encompass conceptual engineering studies.

Cairn’s base-case development option has always been a leased floating production, storage and offloading vessel.

However, one informed source suggested Xodus has been tasked with evaluating “FPSO-ish” options.

This