Vedanta in talks to buy stake in Cairn India
12 August 2010
London-based miner, Vedanta Resources plc is in talks with oil and gas company Cairn Energy Plc for acquiring a stake in the Edinburgh-based company's Indian assets.
Responding to media reports, Cairn Energy said, ''The board of Cairn Energy PLC notes the media speculation and confirms that discussions are taking place with Vedanta Resources plc in respect of the disposal of an interest in Cairn India Limited.''
''Cairn emphasises that there can be no certainty the contemplated disposal will occur or as to the terms of any such disposal. A further announcement will be made when appropriate.''
The news, however, has stumped analysts since Vedanta's core business is mineral mining and refining like Anglo Australian miner BHP Billiton, with no experience in the oil and gas industry .
Cairn Energy is an independent oil and gas exploration and extraction company that was founded in 1981 and run by Sir Bill Gammell, the former international rugby player.
Cairn India is the country's second largest private crude oil producer operating three oil fields in Barmer namely Mangala, Bhagyam and Aishwariya (MBA). Together, it has a recoverable oil reserve of one billion barrels.