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| Petronas buys 2.3% stake in Cairn India |
| Press Trust of India / New Delhi Oct 15, 2009, 12:37 IST |
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Malaysian oil firm Petronas has bought 2.3 per cent stake in Cairn India for $240 million (around Rs 1,100 crore) to raise its holding in the company, which gave the nation its largest oil find in recent times, to near 15 per cent.
Petronas International Corp, which held 239.83 million shares, or 12.64 per cent, in Cairn, will buy 43.6 million additional shares from Cairn UK Holdings Ltd, the parent firm of Cairn India, the company said in a statement here.
Cairn UK Holdings, which had 64.68 per cent stake in the Indian arm, will see its shareholding fall to 62.38 per cent. After the buyout, Petronas holding in Cairn India will rise to 14.94 per cent.
The company has also agreed to sell a 10 per cent interest in six of its operated blocks off the cost of Greenland to Petronas. Petronas will pay Cairn $70 million under the farm out agreement that gives the Malaysian state- owned oil firm an option to raise its interest to 20 per cent.
The $310 million Cairn got from Petronas, "will be targeted for additional investment in Greenland exploration," the statement said. The companies have agreed to cooperate on an 80/20 basis on any other bidding rounds in Greenland.
Cairn India, yesterday, stated that it has raised $1.6 billion funds from domestic and overseas lenders to repay old debt and accelerate the Rajasthan project where crude oil production started a few weeks back.
Cairn, on August 29, started crude oil production from the Mangala oilfield in the Rajasthan block, the current output from where is around 10,000 barrels per day. It will touch a peak of 175,000 bpd (8.75 million tons a year) or 20 per cent the nation's current production by 2011.
"We are delighted that Petronas is joining with us in Greenland as we take forward our leading exploration position," Cairn Energy Plc Chief Executive Officer Bill Gammell said.
"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."
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