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Vedanta’s Plans to Sale Stake in Cairn Oil & Gas Business Stalled

Vedanta’s plans to sell a minority stake in its Indian oil unit have stalled after a collapse in crude prices. The company was looking to raise more than $1 billion by selling at least 20 percent of its Cairn Oil & Gas business.

 

The crash in energy prices and the COVID-19 pandemic have made it difficult for potential investors to gauge Cairn Oil & Gas business outlook. While the stake sale talks could resume when oil prices stabilise, Vedanta may also explore other fundraising options to reduce its debt.

 

Cairn Oil & Gas is the private oil and gas producer, contributing about 25 percent of the nation’s domestic crude oil production. It has interests in 58 blocks in India.

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