Cairn India sale delayed

19th May 2011 17:23

Cairn Energy, the Edinburgh-based oil and gas exploration and production company, today informed investors of a delay in the sale of part of its stake in Cairn India to Vedanta, which is pending approval by Indian government ministers. Cairn Energy and Vedanta have agreed to extend the closing date of their Sale and Purchase Agreement in order to secure the necessary consents and approvals from the government of India. Following this transaction Cairn is expected to retain a 22% interest in Cairn India versus its current stake of 62%.Cairn has also informed the markets of the approval received from the Greenland government for the 2011 exploration programme offshore Greenland. The company plans to drill up to four wells this summer season. Shares in Cairn closed 0.7% higher today in London trading, at 432.7p. AB