Cairn expects to complete India deal shortly

[LesCrozes]

Cairn expects to complete India deal shortly
Oct 20 (Reuters) - British oil firm Cairn Energy said on Thursday that it expected a long-delayed deal to sell a stake in its Indian business to complete shortly.

The company has been waiting for over a year to conclude a $6 billion deal which will see miner Vedanta Resources buy a majority stake in Rajasthan-based oil producer Cairn India .

Cairn has repeatedly said it will return "substantial" funds to shareholders once the deal has completed.

Cairn, which will own a 22 percent stake in the Indian unit after the deal is finalised, has shifted its focus from India to exploration in Greenland but has so far had no success, drilling six dry holes in the country in the last two years.

Drilling is ongoing at two wells off the coast of Greenland, the company said, adding that the three unsuccessful wells it has so far drilled in 2011 cost a total of $573 million.

Shares in Cairn traded down 0.8 percent to 283.5 pence at 1109 GMT, broadly in line with the European oil and gas sector which was 0.7 percent lower, and valuing the firm at around 4 billion pounds ($6.3 billion). ($1 = 0.632 British Pounds) (Reporting by Sarah Young; editing by Lorraine Turner)