CAIRN Energy chief executive Simon Thomson has said the company is well placed for growth after making big strategic moves in recent weeks, although it has suffered a revolt on boardroom pay.

In March Edinburgh-based Cairn clinched a $460 million (£330m) deal to sell its North Sea production interests and bought a stake in a big portfolio in Egypt for $320m.

Mr Thomson said yesterday that the Egyptian assets will power the next phase of growth for Cairn.

He was speaking at Cairn’s annual general meeting, where the company won strong backing for its strategy from investors. Around 99.9 per cent of votes cast approved the company’s accounts for the last year.

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However, some 34.9% of votes cast opposed approval of the directors’ remuneration report. The result signals unease among investors about the boardroom paybill at Cairn, which totalled £3.1min 2020, and £2.5min the preceding year. Mr Thomson’s total remuneration rose to £1.48m from £1.17m.

He told the meeting the decision to sell the company’s North Sea production interests to Waldorf Production reflected directors’ belief the timing was right.

The proceeds from the sale of stakes in the Kraken and Catcher fields will add to the return on investment that Cairn has enjoyed since bringing the fields into production. The deal to acquire Shell’s onshore assets in Egypt, with Cheiron, will bring Cairn low-cost, sustainable gas-weighted production close to growing markets.

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In December Cairn was awarded $1.2 billion damages by an international tribunal after winning a long-running legal dispute with the Indian government.

Mr Thomson told the meeting he wanted to convey the company’s deep feelings of sympathy and concern for the current and developing health situation in the country and earnest hope that India would see relief from the pandemic soon.

He added: “Whilst India has sought to challenge the basis of the award through set-aside proceedings in the Dutch courts, we remain confident of our position and continue constructive engagement with the Government of India whilst at the same time taking all necessary actions to protect our rights to the award and access the value of it as early as possible.”

Regarding the vote on remuneration, Cairn said it would continue to engage with its shareholders and carefully consider all feedback.