Cairn agrees deals with Petronas

Oct 14 2009 By Greig Cameron

Asset and share sales add up to $310m

CAIRN has agreed a shares and asset sale worth US $310m.

It will sell 10 per cent of its interest in six of its offshore blocks in Greenland to Petronas.

As a result Petronas will have an option to increase its interest in any of the developments to 20 per cent while both companies have agreed to co-operate on further bids around Greenland.

In addition Petronas has also bought a 2.3 per cent stake, comprising 43.6 million shares, in Cairn India taking its holding to 14.94 per cent.

Cairn said it will use the money raised to invest more in its exploration operations in Greenland.

Sir Bill Gammell, chief executive, said: "We are delighted Petronas is joining with us in Greenland as we take forward our leading exploration position.
 
"The acquisition of additional Cairn India shares by Petronas reflects our shared belief in the continuing growth potential of Rajasthan while giving Cairn increased financial and operational flexibility in line with our growing confidence in Greenland."