Cairn Energy has said it plans to cut jobs as the oil and gas company looks to rein in costs after losing $120m (£72m) in the first half.

Edinburgh-based Cairn said it had set aside $3 million relating to the costs of an unspecified number of redundancies.

The company said: "Controlling administrative cost levels is a continuing priority and Cairn is currently re-organising the Group to ensure staffing levels are appropriate for the future work programme."

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Famed for making bumper finds in India under founder Sir Bill Gammell, Cairn is still embroiled in a tax dispute in the country. This is preventing the company selling its $1 billion stake in its former Indian subsidiary.

Cairn said it is still encouraged by the potential of a block off Greenland, where the company has spent $1bn without repeating the success it enjoyed in India.