EDINBURGH, UK -- Cairn has entered into binding heads of terms with Petronas International Corp. Ltd. (PICL) on the following terms:
• Cairn has agreed to sell a 10% interest in its existing six operated blocks offshore Greenland to PICL, subject to government and partner approvals
• PICL has an option to increase its interest to 20% in any development in these blocks, in return for payment of further consideration
• Cairn and PICL have also agreed to cooperate on an 80/20 basis on any other open door or bid round initiatives in Greenland
• In addition, PICL has acquired 43.6 million shares in Cairn India Ltd. (CIL) representing a 2.30% stake, taking PICL’s total holding of CIL to 14.94%.
PICL will pay $310 million for the above transactions. Cairn intends to use these funds for additional investment in Greenland exploration.
“We are delighted that Petronas is joining with us in Greenland as we take forward our leading exploration position,” says Sir Bill Cammell, CEO of Cairn Energy. “The acquisition of additional CIL 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.”
Cairn, Petronas sign heads of terms for Greenland blocks
Cairn has entered into binding heads of terms with Petronas International Corp. Ltd. (PICL) on the following terms: