Cairn India set for further expansion

CAIRN India was split from its Edinburgh-based parent to develop its major assets in Rajasthan, but now the Mumbai-based offshoot seems set to become an international player in its own right.

Cairn already holds some production in Bangladesh and exploration assets in nearby Sri Lanka, and unnamed executives have reportedly drawn up plans to expand further across Asia, in particular into Indonesia.

While developments are said to be at a preliminary stage, the board of Cairn India has had informal talks with majority owner Cairn Energy, deciding that any investment in the Asian region will be handled by the Indian business.

Cairn Energy has in recent months begun testing in Greenland and Tunisia. Cairn India expects to produce first oil from its Indian assets next year.

Shares in Cairn Energy leapt 12 per cent to 1,840p yesterday as crude prices rose.