Cairn bought the exploration licenses in Rajasthan from Royal Dutch Shell, who believed the properties contained no oil, in 1997 for just $7 million.
THE WALL STREET JOURNAL
By James Herron
Instead of settling into the respectable middle tier of global oil producers as its major oil discoveries in Rajasthan, India, gradually come onstream, the U.K.-listed Cairn Energy has decided to do the oil industry equivalent of selling the Volvo, buying a Harley and cruising off into the sunset.
Cairn Energy will sell the bulk of its stake in Cairn India, which owns and operates the Rajasthan fields, to metals and mining company Vedanta Resources. Cairn Chief Executive Sir Bill Gammell leaves behind dreary subjects like pipeline maintenance and enhanced oil recovery and will instead focus his companys resources on the exciting business of exploring for new fields.