2009-10-28-2009-10-14

To acquire 10% WI in 6 blocks offshore Greenland, interest in Indian subsidiary.

Malaysian national oil company Petroliam Nasional Berhad (Petronas) plans to acquire a 10% interest in six blocks offshore Greenland and an interest in an Indian subsidiary from Edinburgh, Scotland-based Cairn Energy Plc (London: CNE) for US$S310 million. Petronas has an option to increase its interest to 20% in any development in these blocks, in return for payment of further consideration to reflect a market valuation of the additional 10% interest at that time. Cairn and Petronas have also agreed to cooperate on an 80/20 basis on any other open door or bid round initiatives in Greenland. In addition, Petronas has acquired from Cairn 43.6 million shares in Cairn India Ltd., representing a 2.30% stake in the company and taking its total holdings to 14.94%. The consideration consists of approximately $240 million for the CIL shares and $70 million for the Greenland position.