Cairn Energy Delayed Production Launching

Cairn Energy has again postponed the start date for production at its main Indian oilfield due to slower-than-expected pipeline building.

The Mangala oilfield should now come online in 2009, rather than in 2008 as predicted. Cairn had initially forecast it would start pumping oil in 2007.

However, the company said that the problems would not disrupt its plan to list its Indian operations on the Bombay stock exchange in December.

Cairns shares closed 0.4% higher at 2125 pence, after falling as much as 3.8% in earlier trading.