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Oil and gas firm Cairn Energy confirms India talks

12 August 10 16:14
Mangala Processing Terminal, Rajasthan

Cairn Energy is in talks to sell an interest in its India operations to mining group Vedanta Resources.

The Edinburgh-based oil and gas company confirmed the talks following media reports the two parties had opened discussions.

Cairn, which has a 62.37% interest in its Bombay-listed arm Cairn India, did not provide further details.

Shares in Cairn rose slightly on news of the talks with Vedanta, which is India's largest listed mining group.

In a short statement, Cairn said it had noted media speculation in confirming that discussions were taking place.

But it emphasised there was "no certainty the contemplated disposal will occur or as to the terms of any such disposal".

Cairn India has interests in a total of 11 acreage blocks in India and Sri Lanka.

Cairn announced recently that net profits from its India operations rose six-fold in the first quarter of the fiscal year, helped by crude output from its field in western India.

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