Cairn Energy suspends share buy back initiative

Scottish exploration firm Cairn Energy has suspended a $300m (€216m) share buyback programme, in which it has invested $95m.

The company, which last year bought into two Porcupine Basin-based assets held by Providence Resources, said yesterday it remains unable to sell its 10% stake in its Cairn India subsidiary; the money from which was earmarked for use in the share repurchase.

Cairn has already bought 25.2m shares and invested $95m, but is suspending the programme until the position regarding Cairn India and “interactions” with India’s tax authorities are resolved. Cairn said it remains committed to its planned drilling operations for this year — part of which will be the drilling at Spanish Point, off the west coast.