CAIRN Energy has said it has reached an agreement to sell its interests in oil finds off Senegal to Woodside Petroleum, which is set to beat off competition from Lukoil for the assets.

Edinburgh-based Cairn agreed in July to sell its Senegal portfolio to Lukoil for up to $400m.

The portfolio includes a stake in the giant Sangomar find, which is expected to be brought into production in 2023 .

READ MORE: Edinburgh oil firm to make big payouts to investors after $400m deal

However, Woodside, exercised its right to pre-empt the deal with Lukoil by acquiring the assets on the same terms. Woodside has partnered Cairn in its work off Senegal for some years.

Cairn is in line to get $300m cash on completion of the deal with Woodside, with a further $100m to come dependant on the timing of first oil and the average price of Brent crude during the first six months of production.

The company yesterday reiterated plans to return at least $250m of the proceeds of the Senegal asset sale to shareholders.

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It could invest some of the cash in developing its portfolio, which includes producing fields in the North Sea and exploration assets around the world.

These will be able to vote on the proposed deal with Woodside at a general meeting on September 23.

This will be held as a closed meeting due to social distancing considerations, meaning votes will be cast by proxy. Shareholders will be able to submit questions regarding the deal to the company by email before the meeting.