It will use most of the money to fund the completion of its temporary drillingprogramme, planning applications and feasibility studies for the project, called York Potash.
Royal Dutch Shell has said that it will suspend its offshore drillingprogramme in the Arctic for the rest of 2013 in order to give time to ensure safety.
Edinburgh-based Cairn said the move would add drilling to its 2012 exploration programme, with up to nine Agora wells scheduled to be drilled off the UK and Norway.