Petronas and Cairn seal Greenland deal

** FILE ** This is a July 2007 file image of a Inuit seal hunter Dines Mikaelsen as he touches a dead seal atop a melting iceberg near Ammassalik Island, Greenland. Greenland voters overwhelmingly approved a plan to seek more autonomy from Denmark and take advantage of oil reserves that may lie off the glacial island, official results showed Wednesday Nov. 26, 2008. The Arctic island's election commission said 76 percent of voters supported the referendum, which sets new rules on splitting future oil revenue with Denmark. The vote was seen as a key step toward independence for the semiautonomous territory, which relies on Danish subsidies. (AP Photo/John McConnico)

Sharing the spoils: in Greenland

JOHN MCCONNICO

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By News wires

 14 October 2009 14:37 GMT

UK oil company Cairn Energy has agreed to sell a 10% stake in six of its operated blocks off Greenland to Malaysia's Petronas.



Petronas will pay Cairn $310 million under a farm out agreement that gives the Malaysian player an option to raise its interest to 20%.

It also gives Petronas an further 2.3% slice of Cairn India, taking its holding to 14.9%.

Cairn said it will use the cash to pay for further exploratio in Greenland, Reuters said.

Cairn and Petronas have agreed to co-operate on an 80/20 basis on any other bidding rounds in Greenland.

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