Cairn agrees Petronas farm-out, India stake sale

14th Oct 2009 14:27

Cairn Energy has agreed to farm out a 10% interest in its existing six operated blocks offshore Greenland and sell a stake in its Indian business to Malaysia's Petronas.The Edinburgh-based oil and gas exploration and production company said Petronas has upped its stake in Cairn India (CIL) by 2.3% to almost 15%.It will pay $240m for the Cairn India shares and $70m for the Greenland position.Petronas also has an option to double its interest in the Greenland blocks to 20% in return for extra payment."We are delighted that Petronas is joining with us in Greenland as we take forward our leading exploration position," said Cairn boss Bill Gammell."The acquisition of additional CIL 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."