Cairn Energy will seek its shareholders’ nod on October 7, at a meeting in Edinburgh, for sale of majority stake in its Indian arm, Cairn India, to London-listed Vedanta Resources.
Cairn Energy is selling between 40 and 51 per cent of its 62.38 per cent stake in Cairn India to billionaire Anil Agarwal’s Vedanta group for up to $8.48 billion.
Cairn India produces 125,000 barrels of crude oil per day (bpd) from the Mangala oilfield in Rajasthan and has stated the output could rise to 150,000 bpd.
The entire Rajasthan block, estimated to hold 6.5 billion barrels of oil reserves, can produce up to 240,000 bpd.
Permission for the mandatory open offer for a further 20 per cent of the shares has yet to be given by the Securities and Exchange Board of India.
