Cairn Awarded New Exploration Blocks in India

The Government of India (GOI) has announced that Cairn has been awarded five new exploration blocks in India. The blocks were awarded to Cairn and its joint venture partners under the fifth New Exploration Licensing Policy round (NELP V).

There was an unprecedented level of international interest for this latest round of licenses. In competitive bidding there were a total of 69 bids for 20 exploration blocks with bids from 26 foreign companies including Cairn.

Cairn has been awarded five onshore and offshore blocks, including two new areas in Rajasthan. Bidding for the blocks closed on May 31, 2005. The GOI has indicated, subject to finalization of contracts, that the signing of the Production Sharing Contracts will take place by October 2, 2005, enabling initial work to commence in 2006.

Bill Gammell, Chief Executive of Cairn said:
"We are delighted to have secured these new blocks as India continues to offer attractive exploration opportunities." The blocks are as follows:

• RJ-ONN-2003/1 Onshore Western Rajasthan, Rajasthan Basin
  Cairn (30%), ONGC (36%) and ENI (34%, operator)
• VN-ONN-2003/1 Onshore Eastern Rajasthan, Vindhyan Basin
  Cairn (49%, operator) and ONGC (51%)
• KG-ONN-2003/1 Onshore Andhra-Pradesh, Krishna-Godavari Basin
  Cairn (49%, operator) and ONGC (51%)
• GV-ONN-2003/1 Onshore Uttar Pradesh, Ganga Valley Basin
  Cairn (49%, operator) and ONGC (51%)
• GS-OSN-2003/1 Offshore Gujarat, Saurashtra Basin
  Cairn (49%) and ONGC (51%, operator)