Multi-billion euro windfall for Cairn

Edinburgh: Investors in explorer Cairn Energy were toasting the prospect of a multi-billion euro windfall yesterday from the Indian oil fields it bought more than a decade ago for a fraction of the price.

Edinburgh-based Cairn – led by former Scottish rugby international and founder Bill Gammell – currently owns 62.4% of Cairn India which struck oil in Rajasthan in 2004.

Cairn is selling most of its stake for up to $8.5 billion (€6.63bn) after buying out Shell from an exploration joint venture between 1997 and 2002 – for a sum thought to be in the millions – before the transformational discovery six years ago.