Shirish Nadkarni
OGJ Correspondent
MUMBAI, Mar. 16 -- Cairn Energy PLC said it is considering an initial public offering of its Indian exploration and production business after confirmation of another hefty upgrade of oil in place in its key Rajasthan acreage.
The Scottish E&P firm said it intended to eventually return proceeds from any IPO on the Bombay Stock Exchange to investors through share buy-backs or dividends.
Cairn favors an IPO as the best way to increase the local autonomy of its Indian business, for which state-owned Oil & Natural Gas Corp. (ONGC) recently made an informal bid.
Cairn said the aim would be an IPO before the start of production from Mangala oil field, expected in 2008.
Cairn has increased its estimate of original oil in place in its Rajasthan acreage in northwestern India to 3.5 billion bbl from 2.5 billion bbl.
