British firm explores for oil in Nepal

A British company has signed an agreement with the Nepalese government to explore for oil in the Himalayan kingdom.

Cairn Energy is to explore areas of southern Nepal close to the Indian border in the next four years, Nepal’s ministry of commerce and supplies says.

The company, which has already ventured in similar schemes in Bangladesh and India, plans to invest about £15.5m (€23.2m) in the project.

Nepal imports all of its oil and gas.