Cairn India MD and CEO Mayank Ashar resigns

Ashar will be replaced by the company's Chief Financial Officer (CFO) Sudhir Mathur as acting CEO

Cairn India, the petroleum exploration arm of London-listed Vedanta Resources, on Friday  announced its managing director (MD) and chief executive officer (CEO) Mayank Ashar had resigned for “personal reasons” with effect from June 5, 2016.

The company has named chief financial officer (CFO) Sudhir Mathur as the interim CEO — the fourth change of guard since Vedanta completed Cairn’s acquisition in December 2011. Mathur will continue to work closely with the leadership team managing the business under the guidance of the board, the company said.

Ashar’s two-year term was to expire later this year. His resignation comes a few days after Cairn India extended the repayment period for its $1.25-billion loan to a group company by two years but at a higher interest rate.    

Cairn India had last month reported a historic loss of Rs 10,948 crore for the fourth quarter ended March as fall in crude oil prices pulled down performance. It also undertook an impairment of Rs 11,674 crore for the financial year ended March. Cairn is also involved in a legal battle with the petroleum ministry over extension of contract for its flagship Barmer block in Rajasthan. Ashar took over as MD and CEO in November 2014 from the then acting CEO, Mathur. Before that, P Elango had served as interim CEO from August 2012 to May 2014. Elango had taken over as interim CEO from Cairn’s first CEO Rahul Dhir in August 2012.

The company said Ashar will provide transition support to Mathur through June 30. “The board expresses its appreciation for Ashar’s contribution during his association with the company. Under Ashar’s leadership, Cairn India has delivered a resilient performance in a challenging business environment,” the company said.

Cairn India chairman Navin Agarwal said Ashar had a positive stint at Cairn. “He leaves Cairn India in the hands of a strong leadership team. Cairn India shares the country’s vision for energy security and I am sure Mathur and the team will continue to strongly pursue the organisation’s goal,” he said.

The company said it remains committed to maintain “one of the lowest cost operations in the world” to pursue innovations and technology in its asset portfolio and create value for its stakeholders.