Cairn Energy sells stake in Greenland's Pitu block

Edinburgh-based explorer Cairn Energy plc said it has sold 30.6 per cent stake in Pitu block in the Baffin Bay Basin off the west coast of Greenland to Norway's oil and gas major Statoil ASA for an undisclosed amount.

Cairn, which discovered India's largest onland oilfield in more than two decades in Barmer in Rajasthan, has a two-year drilling campaign in Greenland without making a commercial find.

"Statoil's extensive Arctic operating and development experience makes them the partner of choice for the Pitu block where we see significant potential," said Cairn Chief Executive Simon Thomson in a press statement.

Under the terms of the agreement Statoil will acquire a working interest of 30.625 per cent in the Pitu licence. Cairn will retain exploration operatorship, with a 56.875 per cent interest in the block, while Statoil will operate any future development. Nunaoil has an ongoing 12.5 per cent interest in the block.

Cairn did not say how much it got for the share sale in Pitu but the statement said Statoil will pay a signature bonus, back costs on the block and promoted terms of future exploration expenditure.

The deal is subject to the approval of the Greenland Government, it said.

However, Cairn offered no clue as to whether a tie-up with Rockhopper was on the cards.

Recent reports claim Cairn has held talks with AIM-listed Rockhopper over the possibility of taking a stake in its Falkland Islands operations.

Cairn recently sold a 40 per cent stake in its India business to Vedanta Resources for $8.48 billion.