PetroSA and Cairn India sign agreement for Block 1

16 August 2012

Vedanta Resources plc

PetroSA and Cairn India sign agreement for Block 1 in South Africa

For Immediate Release

16 August 2012

PetroSA and Cairn India sign agreement for Block 1 in South Africa

CAPE TOWN - PetroSA and Cairn India Group ("Cairn India") today signed a farm-in agreement for exploring for crude oil and natural gas in the offshore Block 1 in the Orange Basin on the west coast of South Africa. The closure of the transaction is subject to South African regulatory approvals.

Block 1 covers a large area of 19,922km2 and is currently in the initial stages of exploration. It has an existing gas discovery and identified oil and gas leads and prospects. Located in the geologically proven Orange Basin along the northwestern maritime border of South Africa with Namibia, the block is on trend with the discovered Kudu and Ibhubesi gas fields. Cairn India will, through a wholly owned South African subsidiary, hold a 60% interest in the block and will be the Operator, with PetroSA holding the remaining interest.

PetroSA is well poised to grow into a leading integrated African energy company. The company seeks to nurture strategic alliances with experienced international companies across the oil and gas value chain. The partnership with Cairn India starts an exciting new chapter and represents another positive development in that direction.

This is a step forward in achieving Cairn India's strategic goal of growing its resource base by acquiring exploration and appraisal assets outside the Indian sub-continent. The Orange Basin is an emerging hydrocarbon province with potential for material oil and gas discoveries. Block 1 will be an anchor exploration asset in South Africa and will augment Cairn India's existing portfolio.

Mr. Everton September, Vice President - New Ventures at PetroSA said:

"We are delighted to join hands with one of Asia's most successful exploration companies. Cairn India brings with it extensive geo-technical and operating capabilities that will combine very well with our experience and understanding of the region. We have a shared mindset, and together are extremely well placed to realise the full potential of Block 1."

Mr. P. Elango, Director - Strategy at Cairn India said: 

"Cairn India is extremely pleased to partner with PetroSA, one of the largest oil and gas companies in South Africa. This is an important first step for the company's growth beyond the Indian sub-continent. We see an attractive opportunity to leverage our capabilities in a rapidly emerging area and aspire to build a wider business in the region."

Contact Details

PetroSA - Media

Thabo Mabaso , Group Communications Manager +27-83-414-8144

[email protected] +27-21-929-3365

Cairn India - Media

Dr Sunil Bharati, Head, Corporate Affairs & Communications +919910486055

[email protected] 

Cairn India - Analysts / Investors

Anurag Pattnaik, DGM - Geology & Investor Relations +919910487716

[email protected] 

Block 1 is a large block of 19,922 sq.km, with water depths ranging from 900 m, and is located in the Orange Basin on the north western border between South Africa and Namibia. The Orange Basin is a large Cretaceous Deltaic Basin with multiple proven source rocks and is lightly explored. PetroSA acquired a 1500 sq. km. 3D seismic survey in 2009.

The Petroleum Oil and Gas Corporation of South Africa Ltd. (PetroSA) is a subsidiary of the Central Energy Fund, which is wholly owned by the state and reports to the Department of Energy. Core business activities of PetroSA include the exploration and production of oil and natural gas; participation in and acquisition of local and international upstream petroleum ventures; production of synthetic fuels from offshore gas; the development of domestic refining and liquid fuels logistical infrastructure; and the marketing and trading of oil and petrochemicals. For more information please visit www.petrosa.co.za.

On 9 January, 2007, Cairn India Limited was listed on the Bombay Stock Exchange and the National Stock Exchange of India. Cairn India is now part of the Vedanta Group, a globally diversified natural resources group with wide ranging interests in aluminium, copper, zinc, lead, silver, iron ore, etc.

Cairn India is headquartered in Gurgaon in the National Capital Region, with operational offices in Tamil Nadu, Gujarat, Andhra Pradesh, Rajasthan and Sri Lanka.

Cairn India is primarily engaged in the business of oil and gas exploration, production and transportation. Average daily gross operated production was 206,963 boe in Q1 FY2012-13, contributing more than one-fifth of India's domestic production. The Company sells its oil to major refineries in India and its gas to both PSU and private buyers.

The Company has a world-class resource base, with interest in eight blocks in India and one in Sri Lanka.

For further information on Cairn India Limited & Cairn Lanka (Pvt.) Limited please visit www.cairnindia.com & www.cairnlanka.com.

Disclaimer 

This material contains forward-looking statements regarding Cairn India and its affiliates, our corporate plans, future financial condition, future results of operations, future business plans and strategies. All such forward- looking statements are based on our management's assumptions and beliefs in the light of information available to them at this time. These forward-looking statements are by their nature subject to significant risks and uncertainties; and actual results, performance and achievements may be materially different from those expressed in such statements. Factors that may cause actual results, performance or achievements to differ from expectations include, but are not limited to, regulatory changes, future levels of industry product supply, demand and pricing, weather and weather related impacts, wars and acts of terrorism, development and use of technology, acts of competitors and other changes to business conditions. Cairn India undertakes no obligation to revise any such forward-looking statements to reflect any changes in Cairn India's expectations with regard thereto or any change in circumstances or events after the date hereof. Unless otherwise stated the reserves and resource numbers within this document represent the views of Cairn India and do not represent the views of any other party, including the Government of India, the Directorate General of Hydrocarbons or any of Cairn India's joint venture partner.

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About Vedanta Resources plc

Vedanta Resources plc ("Vedanta") is a London listed FTSE 100 diversified global natural resources major. The group produces aluminium, copper, zinc, lead, silver, iron ore, oil & gas and commercial energy. Vedanta has operations in India, Zambia, Namibia, South Africa, Ireland, Liberia, Australia and Sri Lanka. With an empowered talent pool globally, Vedanta places strong emphasis on partnering with all its stakeholders based on the core values of entrepreneurship, excellence, trust, inclusiveness and growth. For more information, please visit www.vedantaresources.com.

Disclaimer

This press release contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.