Vedanta Res PLC VED Cairn India Board approves Interim Dividend

  Vedanta Res PLC (VED) - Cairn India Board approves Interim Dividend

RNS Number : 9375P
Vedanta Resources PLC
31 October 2012

                                                               31 October 2012

                            Vedanta Resources plc
 Cairn India Announces Results for the Second Quarter ended 30 September 2012

The following release was issued  today by Vedanta Resources Plc's  subsidiary 
Cairn India Limited.

For Immediate
October 2012


             Cairn India Board approves Interim Dividend payment



The Board of Directors  of Cairn India Ltd  (CIL) today declared interim  cash 
dividend of INR 5 per Equity  share on a face value  of INR 10 per share.  The 
dividend  is  proposed  to  be  paid  on  or  before  15  November,  2012,  to 
shareholders on record as on 6 November, 2012. This will entail an outflow  of 
INR 1,109 crore including the dividend distribution tax of INR 155 crore. This
is the maiden dividend declared by the company for its shareholders.

Cairn India is now well positioned to grow by building a balanced portfolio of
assets and  resources.  The company  is  committed to  deliver  value  through 
superior business performance and partnerships. While deciding the quantum  of 
payout, the twin objective of stable dividend payout and investment for growth
has been kept in view by the Board.

Earlier, in  April 2012  the Board  approved a  dividend policy  of around  20 
percent of  annual  consolidated net  profits.  The payment  of  dividend  was 
subject to the completion of  Corporate reorganisation, which has occurred  on 
18 October, 2012.

Contact Details

Anurag Pattnaik, DGM-Geology & Investor Relations           +919910487716
Dr Sunil Bharati, Head, Corporate Affairs & Communications  +919910486055

                        Cairn India Limited Fact Sheet

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 

Cairn India is primarily engaged in  the business of oil and gas  exploration, 
production and  transportation. Average  daily gross  operated production  was 
207,245 boe in Q2 FY2012-13. 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, one in Sri Lanka and one  in South Africa. Cairn India's resource  base 
is located in four strategically focused areas namely one block in  Rajasthan, 
two on the west coast of India, six on the east coast of India (including  one 
in Sri Lanka) and one in South Africa.

The blocks  are  located in  the  Barmer Basin,  Krishna-Godavari  Basin,  the 
Palar-Pennar Basin, the Cambay Basin, the Mumbai Offshore Basin, Mannar  Basin 
and Orange Basin.

Cairn India's focus on India has resulted  in a significant number of oil  and 
gas discoveries. Cairn made  a major oil discovery  (Mangala) in Rajasthan  in 
the north  west of  India  at the  beginning of  2004.  To date,  twenty  five 
discoveries have been made in the Rajasthan block RJ-ON-90/1.

In Rajasthan, Cairn India operates Block  RJ-ON-90/1 under a PSC signed on  15 
May, 1995. The  main Development  Area (1,859 km^2),  which includes  Mangala, 
Aishwariya, Raageshwari and Saraswati is shared between Cairn India and  ONGC, 
with Cairn India holding 70% and ONGC having exercised their back in right for
30%. The Operating Committee for Block RJ-ON-90/1 consists of Cairn India  and 

Further Development Areas (430 km^2), including the Bhagyam and Shakti  fields 
and (822 km^2) comprising  of the Kaameshwari West  Development Area, is  also 
shared between  Cairn India  and ONGC  in the  same proportion.  The  Mangala, 
Bhagyam and Aishwariya (MBA)  fields have gross  recoverable oil reserves  and 
resources of  approximately  1 billion  barrels,  which includes  proved  plus 
probable (2P) gross  reserves and resources  of 636 mmboe  with a further  300 
mmboe or more of EOR resource  potential. The Rajasthan block is  contributing 
more than one fifth of current  domestic crude production. The total  resource 
base supports a vision to produce 300,000 bopd, (equivalent to a  contribution 
of more than  35% of India's  current domestic crude  production), subject  to 
further investments and regulatory approvals.

In Andhra  Pradesh and  Gujarat, Cairn  India  on behalf  of its  JV  partners 
operates two processing plants, 11 platforms  and more than 200 km of  sub-sea 
pipelines with a production of approximately 30,000 boepd.

Block SL 2007-01-001 was awarded to Cairn Lanka in the bid round held in 2008.
This offshore block is located in the  Gulf of Mannar. The water depths  range 
from 400  to 1,900  meter. Cairn  Lanka (Private)  Limited is  a wholly  owned 
subsidiary of  Cairn India  and holds  a 100%  participating interest  in  the 
block. The signing of the Petroleum  Resources Agreement (PRA) to explore  oil 
and natural gas in the Mannar Basin was held in July 2008 in Colombo.

The farm-in agreement has been signed with Petro SA on 16 August 2012,for 60%
stake along with operatorship  in the Block-I located  in Orange basin,  South 
Africa. The area of the Block is  19,922 sq km. The approval process of  this 
agreement from Govt of South Africa is in progress.

India currently imports 3.4* million bopd  of crude oil. The current  domestic 
crude oil production is approximately 0.76** million bopd of which Cairn India
operated  assets  (Ravva,  CB/OS-2  and  the  RJ-ON-90/1)  contribute   around 

For further information on Cairn India  Limited Cairn Lanka (Pvt) Limited  see

*BP Statistical Review for CY 2011

**MoPNG August 2012 data

                              Corporate Glossary

Cairn India/  Cairn India Limited and/or its subsidiaries as appropriate

Company       Cairn India Limited
Cairn Lanka   Refers to Cairn Lanka (Pvt) Ltd, a wholly owned subsidiary of
              Cairn India
CY            Calendar Year
DoC           Declaration of Commerciality
E&P           Exploration and Production
EBIT          Earnings before Interest and Tax
FY            Financial Year
GBA           Gas Balancing Agreement
GoI           Government of India
GoSL          Government of Sri Lanka
Group         The Company and its subsidiaries
JV            Joint Venture
MPT           Mangala Processing Terminal
MC            Management Committee
NELP          New Exploration Licensing Policy
ONGC          Oil and Natural Gas Corporation Limited
OC            Operating Committee
PI            Participating Interest
PRA           Petroleum Resources Agreement
qoq           Quarter on Quarter
SL            Sri Lanka
Vedanta Group Vedanta Resources plc and/or its subsidiaries from time to time,
              but shall not include CIL
yoy           Year on Year

                              Technical Glossary

2P       Proven plus probable
3P       Proven plus probable and possible
2D/3D/4D Two dimensional/three dimensional/ time lapse
Boe      Barrel(s) of oil equivalent
Boepd    Barrels of oil equivalent per day
Bopd     Barrels of oil per day
Bscf     Billion standard cubic feet of gas
EOR      Enhanced Oil Recovery
FDP      Field Development Plan
MDT      Modular Dynamic Tester
Mmboe    million barrels of oil equivalent
Mmscfd   million standard cubic feet of gas per day
Mmt      million metric tonne
PRDS     Petroleum Resources Development Sectretariat
PSC      Production Sharing Contract

                                Field Glossary

Barmer Hill Formation Lower permeability reservoir which overlies the
Dharvi Dungar         Secondary reservoirs in the Guda field and is the
                      reservoir rock encountered in the recent Kaameshwari
                      West discoveries
Fatehgarh             Name given to the primary reservoir rock of the Northern
                      Rajasthan fields of Mangala, Aishwariya and Bhagyam
Mannar Basin          Located in the Gulf of Mannar, situated on the NE
                      shallow continental shelf of Sri Lanka
MBA                   Mangala, Bhagyam and Aishwariya
Thumbli               Youngest reservoirs encountered in the basin. The
                      Thumbli is the primary reservoir for the Raageshwari


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 


For further information, please contact:


Ashwin Bajaj                

Senior  Vice  President  -   Investor Tel: +44 20 7659 4732 / +91 22 6646 1531

Vedanta Resources plc


Gordon Simpson                        

Faeth Birch                           Tel: +44 20 7251 3801


About Vedanta Resources plc

Vedanta Resources  plc ("Vedanta")  is a  London listed  FTSE-100  diversified 
global resources  major. The  group produces  Aluminium, Copper,  Zinc,  Lead, 
Silver, Iron ore, Power,  and Oil and Gas.  Vedanta has world-class assets  in 
India, Zambia, South Africa, Namibia, Ireland Liberia, Australia and Sri Lanka
and a strong  organic growth pipeline  of projects. 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:


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.

                     This information is provided by RNS
           The company news service from the London Stock Exchange


MSCWGGPGUUPPURG -0- Oct/31/2012 08:14 GMT
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