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Deal with Vedanta not to shift capex plan this fiscal: Cairn

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Press Trust of India Mumbai
Last Updated : Jan 20 2013 | 1:11 AM IST

Oil major Cairn India today said the proposed sale to Vedanta Resources will not impact the company's planned $1.4-billion capital expenditure for the current fiscal.

"Our planned capital expenditure of $1.4 billion for the current fiscal won't be affected by the Vedanta offer to buy a majority stake in the company," Cairn India Chief Executive Rahul Dhir told reporters here today.

On August 16, the London-headquartered Vedanta Resources said it would buy a controlling 60 per cent in Cairn India for $9.6-billion. The NRI billionaire Anil Agrawal-promoted Vedanta has to clear a lot of hurdles, including an okay from the Supreme Court, to get the largest M&A deal in the domestic oil sector closed.

Commenting on Petronas' reported to move to exit Cairn India, in which the Malaysian oil major holds 14.94 per cent, Dhir said, "Petronas is one of the major shareholders here and we have a very good relationship with them. We expect a good outcome from them as well. However, we do not know what exactly are their plans for the future."

Cairn has plans to ramp up its production capacity at its Rajasthan oil fields. The average crude oil production from the Mangala fields situated in the Barmer block of Rajasthan is currently over 44,300 barrels per day, he said adding there will be no change in production as well with the Vedanta offer.

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First Published: Aug 26 2010 | 10:53 PM IST

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